If you have independent variables that are ordinal (say 0, 1, 2, 3) with higher values denoting stronger degree of the variable then do you just include them in a regression as dummies? or treat them as continuous?
would this differ if the independent variable was education {none, primary, secondary}
thanks
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ordinal independent variables
(8 posts)-
Posted 4 months ago #
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Include them as dummies; do not treat them as continuous, since doing so means that every "step" measures the same thing (e.g., the move from no education to primary education is identical to the move from primary education to secondary education), which is rarely true in the case of ordinal variables.
Posted 4 months ago # -
thanks. what if the variable measures something as low, medium and high or none, some, all?
Posted 4 months ago # -
^Same as in the education case. Even if it measured equal intervals, you'd be throwing away information by imposing a homogeneous impact. Better allow for heterogeneous impacts between discrete categories, which is more flexible anyway.
Posted 4 months ago # -
thanks again. very helpful
Posted 4 months ago # -
lol
Posted 3 months ago # -
no kidding
Posted 3 months ago # -
reverse ordered probit
Posted 3 months ago #