Education, Employment and Earnings of Secondary School-Leavers ...

Table 4 (Cont’d)SelectionCorrection Term∧-0.057(0.118)-0.082(0.114)-0.093(0.108)-0.150(0.113)0.699 0.684 0.659 0.626σPseudo-R 2 0.106 0.114 0.132 0.156RESET ~ χ 2 0.214 2.267 1.154 1.4963(0.975) (0.519) (0.764)Homoscedasticity ~ 40.706***χ 2 (0.000)kNormality~ χ 2 22.348(0.309)46.869***(0.000)6.361**(0.042)37.551***(0.000)3.417(0.181)(0.683)61.601***(0.000)4.774*(0.092)Observations 402 402 402 402Notes to table 4:(a) The earnings measure relates to current monthly income.(b) The lower and upper bounds used in estimation expressed in Tanzanian shillings (000s) are [-∞, 50],[50,100],[100,150],[150,200], [200,250], [250,300],[300,400], [400,+∞]. The natural logarithms of the finite intervalboundaries were used in specifying the model’s likelihood function.(c) The reported estimates are based on the maximum likelihood procedure. The estimated standard errorsreported in parentheses are based on the Huber (1967) adjustment.(d) ***,** and * denote statistical significance at the 1%, 5% and 10% level respectively using two-tailed tests.(e) § denotes not applicable in estimation for given model.(f) For the heteroscedasticity test the degrees of freedom are k and are determined by the number of variables ineach specification.(g) The values in parentheses beneath the diagnostic test values are the significance levels of the tests.37