Hi,
My regression involves forming skill groups from time series data and conducting a panel analysis of these skill groups over time. I calculate the average wages in each skill group. So far, i've weighted the wage by multiplying by the group's weight in that year divided by the total weight. I 'm not sure if i need to weight the whole regression. I've read about aweights. However, i also have a variable that is a percentage of the data i.e the percentage of immigrants in each skill group, so i'm unsure if i can still use aweights. Also, i've calculated the weights based on the sample to calculate the mean wage but i later do logwage, so i'm not sure how to weight this using p weights.
My regression i've tried looks like:
regress logwage0 Immigshock1 i.c_id i.Education i.Experience i.Year [aweight=Weight],cluster(Group)
logwage0 is the unweighted wage compared to logwage1 which i've used so far that is manually weighted. Immigshock is the variable that is the percentage of immigrants in the original dataset for a certain skill group.
Please could you help with this. Thank you
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