Hi,
I'm trying to model the following image Array
Using the hausman test gives me "model fitted on these data fails to meet the asymptotic assumptions of the Hausman test;see suest for a generalized test. I then used the the mundlak test and that gives a value of 0, suggesting fixed effects. However, using fixed effects will eliminate the point of the model including education and experience dummies since these are constant over time. I am modelling constant Education-Experience groups and the impact of the immigrant shock variable on wages. please could you help resolve what the best possible strategy is. Thank you.
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