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

Table 5 (cont’d)Selection CorrectionTerm∧-0.448**(0.199)-0.455**(0.203)-0.467**(0.209)-0.483**(0.200)1.055 1.047 1.042 0.997σPseudo-R 2 0.032 0.032 0.034 0.052RESET ~ χ 2 15.878*** 8.535** 6.479* 4.1323(0.001) (0.036) (0.090)Homoscedasticity ~ 20.803**χ 2 (0.035)kNormality~ χ 2 24.780*(0.092)21.956**(0.038)6.448**(0.040)23.137*(0.058)5.511*(0.063)(0.248)41.529**(0.010)13.479***(0.001)Observations 214 214 214 214Notes to table 5:(a) The earnings measure relates to self-employed earnings received in the last six months.(b) The lower and upper bounds used in estimation expressed in Tanzanian shillings (000s) are [-∞,100],[100,150],[150,200],[200,250], [250,300], [300,350],[350,400],[400,500],[500,800],[800,+∞]. The naturallogarithms of the finite interval boundaries 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.39