Stata users -
Hello, I am try to estimate a wage model by non-linear least squares.
wage =
exp({educ}*educ+{exper}*exper+{espersq}*espersq+{smsa}*smsa+{south}*south)+
{delta}*(exp({educ2}*educ+{exper2}*exper+{espersq2}*espersq+{smsa2}*smsa+{south2}*south)^2))
Every time I attempt to estimate it, stata gives me "
* Parameter south2 taken as constant term in model & ANOVA table"
Why is this? What am I doing incorrect? I've tried different starting values
for south2 and it doesn't seem to work.
Any help would be most appreciated!
Thanks!!!
Ben
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