Dear all,
I have a problem with my stata commands. I am estimating the effect of a gender wage gap in different sectors on female sector employment. Now I analyze 14 OECD countries and 12 sectors over 8 years. I start with the following commands in stata:
egen Country_Sector=group(Country Sector)
encode year, gen(time)
xtset Country_Sector time
Now my original equation is xtreg + employment + wagegap + controls i.time, fe vce(r)
Now I received some feedback that I should do the following; Later in your results, I see you add sector-country FE (not sector and country FE – that would be two different sets of FE). I would also suggest to add sector-year FE. And cluster standard errors at the country level.
Im wondering how my stata regression should look like when I want to estimate country and sector FE separately should it look like this:
xtreg + employment + wagegap + controls i.year i.country i.sector, cluster(country) ?
Her second suggestion to include sector-year FE should it then look like this?
egen Sector_Year=group(Sector year)
xtreg + employment + wagegap + controls i.Sector year, fe vce(r) ?
I hope someone can help me out thanks in advance
Kind regards Joris
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