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st: calculation of Employee Weighted Average Number of Employees


From   Prakash Singh <prakashbhu@gmail.com>
To   statalist <statalist@hsphsun2.harvard.edu>
Subject   st: calculation of Employee Weighted Average Number of Employees
Date   Wed, 16 May 2012 23:44:21 +0530

Hello All

I m trying to calculate Employee Weighted Average Number of Employees
(size of firm) based on paper titled "What determines firm size?" by
Kumar, Rajan and Zingales, NBER Working Paper No. 7208.

this is how they have calculated it
The average firm size in each size bin is first calculated by dividing
the number of employees by the number of firms. The average size for
the entire sector is then calculated as the weighted sum of these bin
averages, using as weights the proportion of the total sectoral
employment in that bin.

Can any one guide me how to do this in stata 10.



Regards
Prakash
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