Dear all,
as I am analyzing the effect of education on individual's wage level with panel data on adults, I decided to use a Hybrid model (xthybird) or a Hausman-Taylor.-Model (xthtaylor) to get an estimate for education (which would not be possible with a fixed effects-regression). My question is now how to deal with year fixed effects in those models: As it is highly likely that macroeconomic conditions have the same impact on the wages of all invidiuals I simply would add year dummies in a fixed effects regression. How can I achieve the same result with the Hybrid model and the Hausman-Taylor model? Can I simply include year dummies in those models as well?
Thank you very much in advance
Nina
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