I want to interpret the economic significance of the margin effects. I have the following commands, I want to examine the association between satisfaction (satisfy - a continuous variable) and probability of leaving the firm (leave).
logit leave satisfy other_controls
margins, dydx (satisfy) atmeans post
------------------------------------------------------------------------------
| Delta-method
| dy/dx Std. Err. z P>|z| [95% Conf. Interval]
-------------+----------------------------------------------------------------
satisfy | .0137787 .0050354 2.74 0.006 .0039095 .0236479
------------------------------------------------------------------------------
Variable | Obs Mean Std. Dev. Min Max
-------------+---------------------------------------------------------
satisfy
| 15,593 -.1700978 .7704771 -2.17395 2.455053
Variable | Obs Mean Std. Dev. Min Max
-------------+---------------------------------------------------------
leave| 15,593 .2015648 .4011817 0 1
In terms of the economic significance, did I interpret it correctly?
1.
Holding other variables at means,one unit decrease in satisfaction score, increases employees' likelihood to leave the firm by
1.37 percentage points.
2.
Holding other variables at means, a one standard deviation decrease in the rating of satisfaction will increase employees' propensity of departure by about 5.2% of the mean(0.0137*0.77)/0.202
Thank you very much in advance.
Best,
Ava
0 Response to interpret margin effects after logit regressions
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