Hello,
I have five employee-level variables as below, and I was wondering if I could use the OLS with fixed effect or ordered logistic regression...
Z1 = employee wage
Z2 = employee tenure
Z3 = employee age
Y = employee perception of fairness (ordinal survey item with 5 = very fair... 1 = very unfair)
X = employee job satisfaction (ordinal survey item with 5 = very satisfied...1 = very unsatisfied).
My understanding is that with the two ordinal independent and dependent variables, I perhaps need to use the ordered logistic model. However, I was wondering if using OLS would be incorrect? Furthermore, would it be acceptable to incorporate firm-level fixed effect in the ordered logistic model?
Does STATA allow fixed effects with an ordered logistic model?
Thank you!
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