I am estimating a Linear Fixed Effect model in a panel context, which I set as:
Code:
xtset pid wave
I would like to correct for heteroskedasticity among households and this is why I put vce(cluster hid) where hid is the household id.
Since the panel is over pid I don´t want to change it in xtset.
Code:
xtreg JobS_overall Age Age_sq i.Married Log_RealPay i.Q1-Q3, fe vce(cluster hid)
I looked for answer to this problem in the forum but I could not apply them to my problem.
Can someone please explain if there is another way or my purpose is conceptually wrong?
Thank you.
Francesco
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