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Exercises 459

Dependent Variable: Gov

Probit Logit Linear Probit Logit Linear Probit
(1) (2) Probability (4) (5) Probability (7)
Schooling 0.548
Male 0.272 0.551 (3) - 0.242 (6)
(0.029) (0.062) (0.125) (0.091)
0.035 4.352
(0.003) - 1.027 (1.291)
(0.098) - .344
- 0.455 - 0.050 (0.096)
(0.234) (0.025) - 7.702
(1.238)
Male * Schooling

Constant - 4.107 - 8.146 - 0.172 - 1.717 0.152
(0.358) (0.800) (0.027) (0.179) (0.021)

b. Matthew has 16 years of schooling. What is the probability that he
will pass the test?

c. Christopher never went to college (12 years of schooling). What is the
probability that he will get a job with the government?

d. The sample included values of Schooling between 0 and 18 years, and
only five people in the sample had more than 15 years of schooling.
Jed has completed a PhD and has been a student for 24 years. What is
the model’s prediction for the probability that Jed will get a job with
the government? Do you think that this prediction is reliable? Why
or why not?

11.2 a. Answer (a) through (c) from Exercise 11.1 using the results in column (2).

b. Sketch the predicted probabilities from the probit and logit in columns
(1) and (2) for values of Schooling between 0 and 18. Are the probit
and logit models similar?

11.3 a. Answer (a) through (c) from Exercise 11.1 using the results in column (3).

b. Sketch the predicted probabilities from the probit and linear prob-
ability in columns (1) and (3) as a function of Schoolingi for values of
Schooling between 0 and 18. Do you think that the linear probability
is appropriate here? Why or why not?

11.4 Using the results in columns (4) through (6):

a. Compute the estimated probability of passing the test for men and for
women.

b. Are the models in (4) through (6) different? Why or why not?