Hello Expert, I am trying to apply the fixed effects estimator and control function approach in controlling for time-invariant and unobserved characteristics in my research. In addition, the study is likely to have attrition and clustering errors.
Precisely, I have an unbalanced panel dataset, which consists of identifiers for the child and waves (NIDS 2008 to 2017 that is Wave 1to 5).

From the literature, I know that fixed effects can be used to account for time-invariant characteristics and cluster the standard errors on the panel identifier to control for clustering error. However, since it is important to control for endogeneity issues from unobserved effect is possible. More so, I have an IV and feel the control function approach should be appropriate for the sensitivity test. Then, I predict the residuals of the fixed effects estimation and include the residuals in the "second stage" of the control function approach.

The dependent variable = stunting – measured is continuous
The endogenous variable = Autonomy4 - measured is continuous
IV diffage - measured is continuous
Covariates: cageN, hhsize, lhhincome measured = continuous
Covariates: sex_c, emplstatusdum, Qlifedum, dwel, african, parent, grandparent, uncle_ant, others measured = binary
Covariates: femaleedu, religion measured is categorically ordered

So, for FE, I use the below code:

xtreg stunting Autonomy4 age sex_c cageN hhsize i.femaleedu hhincome Qlifedum emplstatusdum religion dwel african parent grandparent uncle_ant others, fe vce(cluster id)
Control function Approach (CFA):
xtreg Autonomy4 diffage age sex_c cageN hhsize i.femaleedu hhincome Qlifedum emplstatusdum religion dwel african parent grandparent uncle_ant others i.wave, fe vce(cluster id)
predict residual2, e
xtreg stunting Autonomy4 residual2 age sex_c cageN hhsize i.femaleedu hhincome Qlifedum emplstatusdum religion dwel african parent grandparent uncle_ant others i.wave, fe vce(cluster id)

Hence, I would like to ask whether my current setting is correct to control for endogeneity issues (unobserved characteristics), and is there anything wrong with my specification.