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st: Egen for logit regression


From   muhammed abdul khalid <muhammed.abdulkhalid@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Egen for logit regression
Date   Wed, 7 Apr 2010 14:37:24 +0200

Dear All,

I have a question regarding my logit regression:
 Logit wealth lgearnings i.ethnic  i. strata  i. occupation i. edu age

My problem is this:
How do i take into account that the effect on wealth  because some ethnic
group has more PREVIOUS wealth vs the others? My data is panel data of only
one year, so i cant compare with the previous years. I would like to check
the the premium on ethnicity IF everyone starts with same wealth. Currently
in my data , of which the age starts at 20, there is  positive wealth for
some obs (which i suspect due to inheritance).

How do i test the effect on ethnicity IF all observations doesn't have
inheritances wealth? Do i introduce another dummy say ''inheritance'', of
which it equal to wealth>0 at age 20? Or use egen command to create mean
value of wealth as a proxy of starting point?

Any ideas are supremely appreciated


Muhammed
Paris

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