Hi,

I am conducting a difference-in-differences regression to determine the effect of National Living Wage on income inequality. I have some panel data which includes QUARTER, HOURPAY and REGION.

There are 12 different regions. I would like to separate regions into areas of high (20% < %Low Paid), medium (15% < %Low Paid < 20%) and low (%Low Paid < 15%) incidence of low wage employment. This is determined by the percentage of individuals in the region earning an HOURPAY less than the NLW in QUARTER==4.

How could I code this?

Many thanks