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  • Linear probability models with interactions: how can I calculate relative effects / relative risk ratios?

    Dear Statalisters,

    I am running Linear Probability Models with interactions and would like to calculate relative effects.

    Here is an example. I use the nlsw88-data and regress the probability of being married against an interaction between college attainment (binary) and income (continuous). What I want to calculate: the relative effect of college attainment, at different income levels, e.g. at values 5, 10 and 15.

    Here is my code:

    Code:
    sysuse nlsw88,clear
    reg married i.collgrad##c.wage
    margins collgrad, at(wage== (5 10 15)) post
    The margins-command gives me this result:

    Code:
                            
    . margins collgrad, at(wage== (5 10 15)) post
    
    Adjusted predictions                            Number of obs     =      2,246
    Model VCE    : OLS
    
    Expression   : Linear prediction, predict()
    
    1._at        : wage            =           5
    
    2._at        : wage            =          10
    
    3._at        : wage            =          15
    
    -------------------------------------------------------------------------------------
                        |            Delta-method
                        |     Margin   Std. Err.      t    P>|t|     [95% Conf. Interval]
    --------------------+----------------------------------------------------------------
           _at#collgrad |
    1#not college grad  |   .6452051   .0123095    52.42   0.000     .6210659    .6693443
        1#college grad  |   .6846007   .0275997    24.80   0.000      .630477    .7387244
    2#not college grad  |   .6331711   .0134103    47.22   0.000     .6068732    .6594691
        2#college grad  |   .6502325    .020849    31.19   0.000     .6093471    .6911179
    3#not college grad  |   .6211372   .0211735    29.34   0.000     .5796154    .6626589
        3#college grad  |   .6158643   .0254564    24.19   0.000     .5659437    .6657849
    -------------------------------------------------------------------------------------

    What I want now is calculate the relative effect of college education. This should be similar to the Relative Risk Ratio (RRR).
    I could do this by hand: divide the predicted probability of being married for those with college attainment by the value for those without college attainment; separately for all levels of income. For the low income group, I would calculate: .6846007 / .6452051.
    Here is how I could do this in Stata:

    Code:
    . display e(b)[1,2] / e(b)[1,1]
    1.0610591
    
    . display e(b)[1,4] / e(b)[1,3]
    1.0269459
    
    . display e(b)[1,6] / e(b)[1,5]
    .99151097
    But: this will not give me standard errors / confidence intervals.
    How can I calculate these ratios including standard errors / confidence intervals?
    In the third step, I would like to plot these ratios.


    I'm using Stata 16.1.

    Best
    Michael
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