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st: Controlling for median via industry


From   "Peter Miller" <peter_miller@gmx.ch>
To   statalist@hsphsun2.harvard.edu
Subject   st: Controlling for median via industry
Date   Wed, 12 Feb 2014 10:09:10 +0100 (CET)

Dear Stata-Community,
 
I’ve a problem, which I can’t figure out for quite some while. Maybe one of you has an idea how to solve this problem.
 
Here is the setting: I’ve a large sample of firms each identified with an ID, Date, Industry and Earnings for example.  For each firm now, I have to control the earnings by the median earnings of the particular industry the firm belongs to.
 
For example: Firm X belongs to Industry Y then it should be something like this:
Adjusted earnings = Earnings firm X – Median of Industry Y
 
In addition, the groups that build the median should have at least 15 firms,  are not allowed to be older than 5 years compared to firm X, and they are not allowed to be younger, i.e. they should not exist before firm X.
 
I struggle with it for quite some while. Any help would be much appreciated!!!
 
Best regards,
Peter 

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