The Palestinian Economy. Theoretical and Practical Challenges

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Makhool
marital status, and industry group.) and the dependent variable (labour force status)
(See Table 3).
Table 3: Likelihood Ratio Tests
Effect Log Likelihood of Reduced Model Chi-Square df Sig.
Intercept 415898.640 .000 0 .
Year of schooling 442987.473 27088.833 8 .000
Locality 416742.398 843.758 4 .000
Age 423226.603 7327.963 14 .000
Activity 546201.095 130302.456 10 .000
Marital status 419877.884 3979.244 4 .000
District 457244.520 41345.880 28 .000
Sex 423520.947 7622.307 2 .000
Multicollinearity in the multinomial logistic regression is detected by examining the
standard errors for the b coefficient. A standard error larger than 2 indicates numerical
problem, such as multicollinearity. None of the independent variables in this analysis had
a standard error larger than 2 (See Tables 4 and 5).
Estimated Odds Ratio and Log Odds Ratio
Tables 4 and 5 present the estimated odds and log odds ratio. The main results can be
summarised as follows:
Gender: males are 3.452 times more likely than females to be underemployed rather
than to be full employed and are 1.726 times more likely than female to be unemployed
rather than to be fully employed.
Education: individuals who had primary education are more likely to be
underemployed (1.169 times more) rather than to be full employed. The effect is strongest
for primary education and weakest for college education or higher. Also, the respondents
with primary education are more likely to be unemployed (4.459 times more) rather than
to be fully employed when compared to respondents with college or university education.
While the respondents who had no education are less likely to be underemployed or