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The Palestinian Economy. Theoretical and Practical Challenges

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410<br />

Makhool<br />

<strong>The</strong> chi- square value of 173727.133 with 62 df is highly significant, this means that<br />

the null hypothesis that all effects of the independent variable are zero can be rejected.<br />

Table 8: Likelihood Ratio Tests(b)<br />

Effect -2 Log Likelihood of Reduced Model Chi-Square df Sig.<br />

Intercept 292366.246(a) .000 0 .<br />

yerschol2 314269.314 21903.068 8 .000<br />

id07 292920.796 554.551 4 .000<br />

age1 299186.321 6820.075 14 .000<br />

industry 386015.399 93649.154 10 .000<br />

marital 294275.128 1908.882 4 .000<br />

wbgs 292366.246(a) .000 0 .<br />

id06 331169.241 38802.995 20 .000<br />

sex 302724.043 10357.797 2 .000<br />

<strong>The</strong> chi-square statistic is the difference in -2 log-likelihoods between the final model <strong>and</strong> a<br />

reduced model. <strong>The</strong> reduced model is formed by omitting an effect from the final model. <strong>The</strong> null<br />

hypothesis is that all parameters of that effect are 0.<br />

a. This reduced model is equivalent to the final model because omitting the effect does not<br />

increase the degrees of freedom.<br />

<strong>The</strong> likelihood ratio test shows that there are statistically significant relationships between<br />

the independent variable (years of schooling, sex, age at last birthday, district, locality<br />

type, marital status, <strong>and</strong> industry group, <strong>and</strong> the dependent variable (labour force status).<br />

Table 9: West Bank: Parameter estimates for the log odds of<br />

underemployed respondents relative to fully employed:<br />

<strong>The</strong> values under B’s coefficient indicate log odds ratio associated with each<br />

effect, while the values under E (B) indicate the odds- ratio.<br />

Independent<br />

Variables<br />

Sex<br />

Male 1.437 .022 4.209 4442.286 .000<br />

Female 0(b) . . . .<br />

Age<br />

15-19 .596 .038 1.816 250.540 .000<br />

20-24 1.165 .031 3.206 1398.425 .000<br />

25-29 1.099 .028 3.000 1493.254 .000<br />

's coefficient St<strong>and</strong>ard error E( ) Wald test Significance

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