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st: control a variable in stata


From   "Kong, Chun" <C.Y.Kong@warwick.ac.uk>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: control a variable in stata
Date   Fri, 20 Apr 2012 14:11:59 +0000

Dear statalist,

I am working on a paper in finding the determinants of NBA players' salary. Data are collected from the 2010-2011 NBA season. My dependent variable is ln(salary). I have got several dummy variables

1) ethnicity (0 if player is born in US, 1 for international player)
2)All-Star
3)Season Played in the NBA
3)Efficiency Index
5)Approximate Value Index
6)Versatility Index
7)Points per Field Goal
8)Turnover to assist Ratio

My results turn out that the salary of international player is higher relative to the players who born in US. However, to make the comparison fair, I want to test the effect of ethnicity on player's salary while controlling the performance of both international players and US players.

At the moment, I am now only working on a simple OLS model. May I ask for your advice that what can I try or do to make my results better? ( I have read something like the random effect and fixed effect model, but I am really not sure what I can do). Also, do I need to do some tests to check the problem such as endogeneity in my model?
Thank you very much for your help and time! 

Andy

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