I have a measure that varies within the industry. Specifically, it's a rank that varies from 0 to 9. The measure is quite sticky, meaning if a firm is assigned to the 8th bucket, it's likely that that firm will end up in 8th again in the following year. Can this be a reason NOT to use firm fixed effect? The reason being that I am utilizing variation within the industry, so having firm fixed effect would absorb the necessary information? Thank you for the help in advance!
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