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st: how to create a variable by a reference group


From   Mirko <mirko.moro@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: how to create a variable by a reference group
Date   Mon, 14 May 2007 22:17:39 +0100

Dear Statalister,
I would like to create a variable as follows.
Suppose I would like to compare the income (y) of individual i with
the income of his reference group (yref) (based on age, education and
region).
In particular I need to create a variable of the average income of the people
a) living in the same region as i; AND
b) with the same education level as i; AND
c) who are 5 years younger and 5 years older than i.
Where region and education are categorical variables that takes value
from 1 to J (for region) and to K (for education) and age is a
continuous variable.
Without age, the variable can be generated easily using the following:

bysort region educ: egen yref=mean(y)

The problem is how to tell to Stata the reference group of age in that way.

Any help and suggestion would be greatly appreciated!
Thanks a lot in advance,

Mirko
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