I'm currently working on the effect of the german minimum wage of 2015 (8.5 EUR per hour) using a nonlinear difference-in-differences model using panel data. More precisely i'm interested in the effect of a minimum wage on the employment retention probability. My treatment group consits of the people whose wage will have to increase in order to comply with the new minimum wage (<8.5 EUR), while my comparison groupe is composed by the people who earn a wage slightly above the minimum wage (between 8.5 and 12.5). I first estimated a logit diff-in-diff model as following
Code:
clear all use sample_1315.dta *generate diff-in-diff variable gen time = (welle>=2015) & !missing(welle) label variable time " 1= after reform 0= before reform" gen treated = (hourly_wage_contract <8.5) & !missing(hourly_wage_contract) label variable treated " eligible to minimum wage" gen interaction= treated*time gen full_time_experience_sqr= (full_time_experience)^2 gen part_time_experience_sqr= (part_time_experience)^2 gen age_sqr=(age)^2 gen year2013 =(welle==2013) gen year2014 =(welle==2014) gen year2015 =(welle==2015) logit employed i.(treated time interaction) i.year2013 if hourly_wage_contract < 12.5 /* only with year controls*/ margins, dydx(interaction) at(treated==1 time==1)
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