I'm estimating a log-linear model with panel data using xtreg where my model is as follows:

log(y

_{1}/y

_{2}) = B

_{0}+ B

_{1}(policy) + B

_{2}(infant)+ B

_{3}(policy*infant) + B

_{4}log(x

_{1}) + B

_{5}(x

_{2}) + B

_{6}(year) + B

_{7}(state)

where policy = 0 for control individuals living in states before the policy and = 1 for treated individuals living in states after the policy was introduced (the policy introduction is staggered across time)

infant = 1 only at the year the individual has an infant and = 0 otherwise

x

_{1}is log of wages

x

_{2 }are other demographic and economic factors that are not log-transformed

How can I interpret the coefficient on B

_{3 }which is the instantaneous effect of the policy only during the year individual has an infant?

Any help is appreciated!

Surya

## Leave a comment: