Figure 2
The figure consists of two panels arranged side by side, each drawn on a coordinate plane and labeled as Figure 2 a and Figure 2 b. Both panels show the marginal effect of pay on self-employment entry with 95 percent confidence intervals. In Panel (a), titled “Figure 2 a: Marginal Effect of Pay asterisk at Different Age Categories”, the horizontal axis is labeled “Age Category” with three categories arranged from left to right: “18 to 30,” “31 to 50”, and “50 plus”. The vertical axis is labeled “Marginal Effect of Pay on Self-Employment Entry” and ranges from negative 0.006 to 0.004 in increments of 0.002. A dashed horizontal reference line is drawn at 0. Three plotted points are connected by a line. The point for “18 to 30” is (18 to 30, negative 0.0042) with a confidence interval extending roughly from negative 0.006 to negative 0.0021. The point for “31 to 50” is (31 to 50, 0.0008) with a confidence interval from negative 0.001 to 0.0025. The point for “50 plus” is (50 plus, 0.002) with a confidence interval from 0.0002 to 0.0038. The line increases from left to right, indicating a rising marginal effect across age categories. In Panel (b), titled “Figure 2 b: Marginal Effect of Pay asterisk, relative to 31 to 50 year olds”, the horizontal axis is labeled “Pay (logged)” and ranges from 0 to 12 in increments of 2 units. The vertical axis is labeled “Marginal Effect of Pay on Self-Employment Entry” and ranges from negative 0 to 0.8 in increments of 0.2. A dashed horizontal reference line is drawn at 0. Two lines are plotted. The line for “18 to 30” starts at (0, 0.3), decreases sharply to around (3, 0.1), and gradually approaches 0 as pay straight toward 12. The line for “50 plus” remains close to zero across all values, starting near (0, 0) and staying flat through (12, 0). Vertical error bars are shown around the estimates, especially prominent at lower pay values. At pay equals 0, the error bar spans from negative 0.1 to 0.75. As pay increases, the error bars become progressively smaller, and from pay values around 6 to 12, the error bars are narrow and centered close to 0. A note below the figure states: “asterisk Pay is expressed as the natural logarithm (ln underscore pay). Confidence intervals set at 95 percent”. Note: All numerical data values are approximated.(a) Marginal effect of pay* at different age categories. *Pay is expressed as the natural logarithm (ln_pay). Confidence intervals set at 95%, (b) Marginal effect of pay*, relative to 31–50 year olds. *Pay is expressed as the natural logarithm (ln_pay). Confidence intervals set at 95%