Hello there,
I have used XTREGAR command to estimate a random-effect wage equation, using panel data from 11 waves of the British Household Panel Survey. One of my explanatory variables identifies those who had not been in employment in the previous year and thus they had missing values for wages in year t-1. Nonetheless, I get parameter estimates associated with this variable and also an estimate of rho. I do not understand how rho is estimated and how observations for those who had been first time entrants in labour market have been treated in the XTREGAR command.
Any help in understanding how XTREGAR operates will be greatly helpful.
Best regards,
Asghar
Asghar Zaidi
London School of Economics
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/
