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st: dropping outcomes in mlogit

From   [email protected]
To   statalist <[email protected]>
Subject   st: dropping outcomes in mlogit
Date   Thu, 3 Jan 2008 18:41:07 +0100 (CET)

Dear statalist,

I am running a multinomial logit model with three outcomes (0-1-2). The data refer to individual's employment status, and the three outcomes are respectively: not working, working in the informal sector, working in the formal sector.

I set the reference outcome to be the 0 outcome. For a standard set of covariates, results are as expected (ie, Stata gives me the two set of results for outcome 1 and outcome 2 respectively). However, when I include dummies for industrial sectors, only the set of results for outcome 2 appear.

At a fist glance, there seem not to be excess of collinearity among sectors and outcomes. How can I explain than one of the three outcomes is dropped?

Many thanks


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