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3

Economics

3. A researcher has estimated the likelihood of divorce: D = Bo + Â1CAT? + B2EDU; + B3KID; + BAMAR+ BAGE; where D;= dummy equal 1 if person ? files for divorce CATi = dummy equal 1 if person i is Catholic EDUi = years of education for person i KID; = number of kids person i has MARi = number of years person i has been married to a current spouse AGE; = person i age
b. Interpret ß1. (1)

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The effect of being a Catholic (CAT = 1) versus non-Catholic (CAT = 0) = \hat{\beta_1} . Therefore, the log of odd of filing divorce between Catholic and non-Catholic is \hat{\beta_1} .