We consider the model: hours = β0 + β1lockdown + β2kids + β3lockdown∗kids + u Which of the following measures the effect of the number of children on hours of work for women living in areas that were locked down? a) β0 b) β2 c) β2 + β3 d) β3

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We have a random sample of data on women living in NSW in 2020. During the period covered by our data there were COVID lockdowns in some areas but not in other areas. These lockdowns closed schools and required all but essential workers to work from home or stay at home and not work if they could not work from home.

Our data contains the following variables:

  • hours = a woman’s number of hours of work per week
  • kids = a woman’s number of children living at home
  • lockdown = a dummy variable equal to one if the woman is living in an area under a lockdown order and 0 is she is living in an area not locked down.

We consider the model:

hours = β0 + β1lockdown + β2kids + β3lockdown∗kids + u

Which of the following measures the effect of the number of children on hours of work for women living in areas that were locked down?

a) β0

b) β2

c) β2 + β3

d) β3

e) none of the other possible answers are correct

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