Hi, I am aiming to look at the different effect on earnings of increasing the number of dependent children by ethnicity.

Using the following command, I have produced the attached table.

regress lnincome i.race age age_squared i.region i.highestqualification i.fulltime_parttime i.occupation i.marital i.religion race##i.dependentchildren i.wave, cluster(pidp), if sex==1
margins race , dydx(dependentchildren) pwcompare.

I wanted to check with the following interpretation of the results:

So, in the following table. I have used a categorical variable of dependent children and have only shown results for ‘1.dependent children’ which shows the effect of increasing the number of dependent children from 0 to 1 (as 0 dependent children is the base group here).

When attempting to interpret the highlighted co-efficients.For example -0.034, does this mean that the effect of increasing the number of dependent children from 0 to 1 on earnings for the Indian group leads to a 3.4% decrease in earnings relative to the impact on the British group of increasing the number of dependent children from 0 to 1.

And for -0.149, the effect of increasing the number of dependent children from 0 to 1 on earnings for the Pakistani group leads to a 14.9% decrease in earnings relative to the impact on the British group of increasing the number of dependent children from 0 to 1.


*Race is split into 5 categories: British, Indian, Pakistani, Bangladeshi and Other


Thanks