Henrik Wiig wrote:
> I want to estimate whether some observed individuals characteristics have
> led to a higher wage increase in an otherwise fixed (unobserved)
> individual
> characteristic panel data model, i.e. the level form model is as follows:
>
> Y_it = a + a_i + b_t * Z_i + c * X_it
>
> i = individual
> t = periode
> Y=Income
> Z= dummy for male
> X=Hours of labour
>
> This implies the following model of changes:
>
> (*) ch_Y_i = aa + (ch_b)*Z_i + c * ch_X_i
>
> aa=constant that reflects constant period effects
> ch_Y_i = change in income
> ch_b = change in the effect of the observed characteristic of the
> individual
> ch_X_i = change in hours worked
>
> I can of course construct all ch_variables and run it as simple OLS
> regression with Stata command "reg". Meanwhile, I guess it easier (and
> more
> secure) to run some kind of fixed effect "xtreg" model in a "long" data
> set
> (years ordered in columns). How do I do this? What is the commands I
> should
> use?
Using -reshape- ought to do the trick:
. reshape long income male labour, i(individual) j(period)
As Stas Kolenikov has been counselling of late, the exploratory use of
-xtdata- may also be useful to you: -whelp xtdata-.
CLIVE NICHOLAS |t: 0(044)191 222 5969
Politics |e: [email protected]
Newcastle University |http://www.ncl.ac.uk/geps
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