Hi,
I am conducting regressions on panel data. My y variable is wage.
As the panel is unbalanced, the individuals contributing more wage observations carry more weight in the pooled sample, and the fact they have more wage observations may be be correlated with other variables.
Is it easy to use a sampling weight equal to the inverse of the probability that the individual is included in the same for all years? I have noticed the literature tends do this to overcome the problem.
If so, how is this done on Stata?
Many thanks,
Ella
I am conducting regressions on panel data. My y variable is wage.
As the panel is unbalanced, the individuals contributing more wage observations carry more weight in the pooled sample, and the fact they have more wage observations may be be correlated with other variables.
Is it easy to use a sampling weight equal to the inverse of the probability that the individual is included in the same for all years? I have noticed the literature tends do this to overcome the problem.
If so, how is this done on Stata?
Many thanks,
Ella