I need to identify workers working in the same firm and same MSA. I have panel data.
Y=a + b*X + firm*MSA fixed effects (1)
Y=a + b*X + firm_it + MSA_it (2)
The first specification uses time-invariant two-way firm*MSA fixed effects.
The second specification uses time-variant firm (firm_it) and time-variant MSA (MSA_it) fixed effects. Can you *please* tell me which specification identifies workers working in the same firm and same MSA correctly?
0 Response to fixed effects help
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