Hi there,

I have to use an event study methodology to estimate the impact of the event (child birth) on income for men and women separately. this is the regression. the reference category is event time -1

Code:
regress income ib2.eventtime i.age i.year if sex==1, robust cluster(id)
regress income ib2.eventtime i.age i.year if sex==2, robust cluster(id)

I have 316 people in my sample, with variable -id- indicating the person. even time goes from -2 to +5 (in years).

The paper that I'm following just uses robust standard errors and not clustered standard errors. However, they have population based data.

Does it matter that I have a sample for the standard errors? And if that would matter, is there a way to know / test whether I need clustered standard errors?


Thank you I've always struggled with SE, especially considering panel data.