Hello!
I have a following question: I want to estimate the impact of increased use of computers by employees on their employment. I have panel data for 11 industries and 11 time periods. My question is whether it would not be a mistake for me to include an interaction term with my individual term (industry) as I want to see in which industry this effect has been larger or smaller?
That is:
xtset industry time
xtreg employment computer_use c.using_computer#i.industry degree, fe
In addition, if I get a result that coefficient of computer use is -0.2 but insignificant, while the coefficient on interaction term of computer use and industry==1 is -0.1 and significant, does it mean that the overall impact of computer use in industry 1 on employment is -0.3?
Or does it matter that coefficient of computer use on its own was insignificant?
Thank you very much!
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