Hi,

I am using a panel data which consists of individual's employment data from 1998-2017. I am trying to utilize a shock that occured in 2013.

Dv: labor_outcome (1 if labor market movement occurs and 0 otherwise)
Independent variable: years_beyond_2013 (=1 starting year 2013 through 2017 and 0 for previous years)

When I run the following command, the year 2017 gets dropped in addition to year 1998. I understand why year 1998 gets dropped due to the i.year and 1998 becomes the base year. I am trying to figure out why the year 2017 gets dropped.

xtreg labor_outcome years_beyond_2013 i.year, fe

Is this the right specification for me? Also, if 2017 gets dropped due to the colinearity caused by years_beyond_2013 and possible year fixed effects, how can I set the baseline year that gets dropped for that dummy?

Any help would be appreciated.

Best,
Sukhun