A. Here is a fragment from a table that ran a regression analysis for four diffe

Question

A. Here is a fragment from a table that ran a regression analysis for four different racial groups in the US. The dependent variable was "housing equity". What do we learn about the role of age in this analysis?

B. In the previous question, what might be an interpretation of the stronger "effect" of education for Whites and Asians in the US, versus a weaker, smaller effect for Black and Hispanic people? (Source: Krivo and Kaufman, Demography, 41(3):585-605.

Variable Residential Location Midwest South West Central city Age squared Household Statuses Household income Working Education Whites 4878 1.7877** 1.0641 5592 3168 0027** .0177** 2.2738 4921 Blacks .0010 2.0577** 2.5518 1183 1614** 0012 .0159 3212 1713** Asians 3285 4133 1033 -1.7572 0874 0006 .0095** .3681 .3154** Hispanics 2.0145 2.4225 1.4023** 4904* 0026 0003 0151 4630 0641

Explanation / Answer

Given:

A)

Dependent variable: Housing equity

Age and Age squared are significantly associated with Housing equity in Whites and Blacks which means that there is a significant curvilinear realtionship between the Age and Housing equity.

Hence, it can be interpreted as below,

As the age increases, the housing equity is also increasing and at some point of age the increament is stopped.

In the group of Asians and Hispanic people, the relationship is insignificant.

B)

If education has a stronger effect in whites and Asians and if the effect is positive it means that higher the education, higher the housing equity comparing to Black and Hispanic people.

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