Individual Fixed Effect Insignificant Control Variable
Posted: Tue Mar 31, 2020 7:58 am
Hi,
I am currently working on my dissertation regarding the impact of education on economic growth.
I use panel data consists of 33 provinces and 9 years with education, wage, labor and capital as independent variables. I found that when I use Individual fixed effect model, my labor variable is insignificant. But when I use time fixed effect model, it is significant. I don't know how to intepret this result. Why is labor insignificant for individual fixed effect? Can someone tell me the reasons, I have to include it in my dissertation.
Thank you in advance.
I am currently working on my dissertation regarding the impact of education on economic growth.
I use panel data consists of 33 provinces and 9 years with education, wage, labor and capital as independent variables. I found that when I use Individual fixed effect model, my labor variable is insignificant. But when I use time fixed effect model, it is significant. I don't know how to intepret this result. Why is labor insignificant for individual fixed effect? Can someone tell me the reasons, I have to include it in my dissertation.
Thank you in advance.