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June 4th, 2017, 06:42 AM  #1 
Newbie Joined: May 2015 From: sweden Posts: 12 Thanks: 0  Regression
Hello! I need help to interpret my regression results. i have a hard time understanding when there is percentage point or not. My regression: i have an excel file with following variables: Real GDP growth / capita i have calculated this myself with formula ((year 2 year 1)/year 1)* 100 Real GDP / capita year t1 just lagged one year back Delta minimum wage calculated myself with ((year 2 year 1)/year 1)* 100 , (thus i have the level of minimum wage too but its not included in my regression) Delta unemployment calculated myself as year 2  year 1 ex: 5,7  5,5 = 0,2 Unemployment year t1 expressed as 5,7 meaning 5,7% Regression 1: Y Real GDP growth / capita = delta minimum wage + Real GDP / capita t1 Regression 2: Y delta unemployment = delta minimum wage + unemployment t1 Results: regression 1: Y (Real GDP growth / capita) = 0,159*** + 0,0143*(minlwage) + 0,0002397***(gdp level) regression 2: Y (delta unemployment) = 0,890209** + 0,006508*(minwage) + 0,230477***(unemployment level) To interpret these results more i do this: regression 1: an increase of minimum wage by 10% will lead to a decrease in GDP growth/ capita by 0,143 %. I then took the average growth in GDP/capita over the period i studied and found 1,77%. Can i say that the new growth would be 1,77  0,143 = 1,627% ? Regression 2: an increase of the minimum wage by 10% will lead to an increase in unemployment by 0,06508%. I looked up the unemployment numbers in USA which is 4,4% and 7 000 000 people. Thus 1% means 1 590 909 people. New unemployment will be 4,4 + 0,06508 = 4,46508 . 4,46508 * 1 590 909 = 7103535 people. increased unemployment number is thus: 103535 people ? Am i interpreting this right? or do i mix percentage and percantage point? 
June 4th, 2017, 09:06 AM  #2 
Senior Member Joined: May 2016 From: USA Posts: 823 Thanks: 335 
This is a duplicate post that I have answered in the economics forum, but the question seems to me to deserve to be looked at by statisticians as well as economists.


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