Hi, for the sake of my question I will use the following variables: dependent = lnwage, control1 = gender, control2 = education level
I want to do a regression on log wages and the interaction between gender and edu level.
Currently to run the regression I am using the following input
reg lnwage i.gender##edu
The base levels are gender: male and edu: level 1
From my understanding the interpretation of the coeff of female#level 2 = -0.2
Would be a female with a level 2 education receives 20% less than a male with a level 1 education. And a female with a level 3 edu receives 15% less than a male with a level 1 edu etc.. Since male, level one is the base.
However, I want to be able to get output that allows me to interpret the coeff as a female with a level 2 edu receives 20% less than a male with a level 2 edu and a female with a level 3 edu receives 15% less than a male with a level 3 edu and so on.
Basically I'd like a regression in which the females edu level is compared with a male of the same edu level, rather than a male at the base edu level, for every edu level, including the base level 1.
I hope this makes sense. I am new to stata and haven't interpreted statistical values in years.
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