Evaluation of the Australian Wage Subsidy Special Youth ...

266
Not employed -0.08 -0.02
(0.41) (0.41)
mother post-school qualification when resp 14 -0.04 -0.01
Religion brought up in (0.27) (0.27)
Catholic 0.36 0.10
(2.85)** (2.85)**
Presbyterian 0.49 0.11
(2.35)* (2.35)*
Methodist 0.15 0.04
(0.84) (0.84)
Other Christian -0.08 -0.02
(0.38) (0.38)
Other religion -0.03 -0.01
(0.16) (0.16)
No religion 0.35 0.09
(2.11)* (2.11)*
constant 1.16
(3.65)**
Observations 1283 1283
Log likelihood -569.76
LR chi 2 (59) 171 329.72
Mcfadden’s Pseudo R 2 172 0.2244
Akaike Information Criterion 0.98
Absolute value of z statistics in parentheses * significant at 5%; ** significant at 1%
171 This is the likelihood ratio test of the hypothesis that all coefficients except the intercept are equal to
zero. It is defined as LR = 2 (log likelihood M full – 2 log likelihood M intercept ). The degrees of freedom of this
chi squared distributed statistic are equal to the number of constrained parameters i.e. the number of
coefficients being tested.
172
This measure of fit is also known as the likelihood ratio index. It compares the full model of parameters
(Mfull) to a model with just the intercept (Mintercept). It is defined as R2 = 1 – (log likelihood Mfull / log
likelihood Mintercept). The value of Mcfadden’s Pseudo R2 increases as new variables are added.