Notes:

1. (/v# option or -set maxvar-) 5000 maximum variables

Checking for updates...

(contacting http://www.stata.com)

bad serial number

unable to check for update; verify Internet settings are correct.

. use "C:\Users\BLADIMIR\Desktop\base de datos.dta"

(PSID wage data 1976-82 from Baltagi and Khanti-Akom (1990))

. xtset id t

panel variable: id (strongly balanced)

time variable: t, 1 to 7

delta: 1 unit

. xtsum occ

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

occ overall | .5111645 .4999354 0 1| N = 4165

between | .469327 0 1| n= 595

within | .1731615 -.3459784 1.368307 | T= 7

. xtsum smsa

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

smsa overall | .6537815 .475821 0 1| N = 4165

 between | .4601658 0 1| n= 595

within | .1223035 -.2033613 1.510924 | T= 7

. xtsum ind

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

ind overall | .3954382 .4890033 0 1| N = 4165

between | .4648725 0 1| n= 595

within | .152739 -.4617047 1.252581 | T= 7

. xtsum ms

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

ms overall | .8144058 .3888256 0 1| N = 4165

between | .3686109 0 1| n= 595

within | .1245274 -.0427371 1.671549 | T= 7

. xtsum union

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

union overall | .3639856 .4812023 0 1| N = 4165

between | .4543848 0 1| n= 595

within | .1593351 -.4931573 1.221128 | T= 7

. xtsum fem
Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

fem overall | .112605 .3161473 0 1| N = 4165

between | .3163754 0 1| n= 595

within | 0 .112605 .112605 | T= 7

. xtsum blk

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

blk overall | .0722689 .2589637 0 1| N = 4165

between | .2591505 0 1| n= 595

within | 0 .0722689 .0722689 | T= 7

. *fem y black no presentan variaciones en el tiempo

. xttab occ

Overall Between Within

occ | Freq. Percent Freq. Percent Percent

----------+-----------------------------------------------------

0 | 2036 48.88 348 58.49 83.58

1 | 2129 51.12 352 59.16 86.40

----------+-----------------------------------------------------

Total | 4165 100.00 700 117.65 85.00

(n = 595)

. xttrans

varlist required
r(100);

. xttrans occ

occupation |

; occ==1 |

if in a | occupation; occ==1 if

blue-colla | in a blue-collar

r| occupation

occupation | 0 1| Total

-----------+----------------------+----------

0| 95.19 4.81 | 100.00

1| 4.99 95.01 | 100.00

-----------+----------------------+----------

Total | 49.10 50.90 | 100.00

. graph twoway (scatter lwage ed) (qfit lwage ed)

. graph twoway (scatter lwage ed)

. graph twoway (scatter lwage ed) (qfit lwage ed)

. xtsum lwage

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

lwage overall | 6.676346 .4615122 4.60517 8.537 | N = 4165

between | .3942387 5.3364 7.813596 | n= 595

 within | .2404023 4.781808 8.621092 | T= 7

. xtsum lwage by id: egen meanwage=mean(lwage) y

variable by not found

r(111);

. xtsum by id: egen meanwage=mean(lwage) y

variable by not found

r(111);

. xtsum lwage by id: egen meanwage=mean(lwage) y

variable by not found

r(111);

. xtsum lwage id: egen meanwage=mean(lwage) y

: invalid name

r(198);

. xtsum lwage id egen meanwage=mean(lwage) y

variable egen not found

r(111);

. quietly xtreg lwage $xlist, re

. scalar theta = e (theta)

e ambiguous abbreviation

r(111);

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

2. by id: egen mean·x· c mean(·x·)

3. generate md·x· = ·x· - mean·x·

4. generate red·x· = ·x· - theta•mean· x·

5. }

invalid syntax

r(198);

. egen meanwage=mean(lwage)

. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

 2.

. 2. by id: egen mean·x· c mean(·x·)

3.

. 3. generate md·x· = ·x· - mean·x·

4.

. 4. generate red·x· = ·x· - theta•mean· x·

5.

. 5. }

unrecognized command: 2. invalid command name

r(199);

. quietly regress redlwage redexp redexp2 redwks mdexp mdexp2 mdwks

variable redlwage not found

r(111);

. test mdexp mdexp2 mdwks

mdexp not found

r(111);

. quietly xtreg lwage $xlist, re

. scalar theta = e (theta)

e ambiguous abbreviation

r(111);

.
. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

2. quietly xtreg lwage $xlist, re

3.

. scalar theta = e(theta)

4.

. global yandxforhausman lwage exp exp2 wks

5.

. sort id

6.

. foreach x of varlist $yandxforhausman {

7. }

8.

. quietly regress redlwage redexp redexp2 redwks mdexp mdexp2 mdwks

9.

. test mdexp mdexp2 mdwks

10. }

variable redlwage not found

r(111);

. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

.

. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

2. by id: egen mean·x· c mean(·x·)

3. generate md·x· = ·x· - mean·x·

4. generate red·x· = ·x· - theta•mean· x·

5. }

invalid syntax

r(198);

. quietly xtreg lwage $xlist, r

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

2. by id: egen mean"x" c mean("x)

3. dfóbe

4. }

invalid syntax
r(198);

. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. sort id

. foreach x of varlist $yandxforhausman {

2. by id: egen mean·x· c mean(·x·)

3. generate md·x· = ·x· - mean·x·

4. generate red·x· = ·x· - theta•mean· x·

5. }

invalid syntax

r(198);

. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. sort id
. foreach x of varlist $yandxforhausman {

2. by id: egen mean·x· c mean(·x·)

3. generate md·x· = ·x· - mean·x·

4. generate red·x· = ·x· - theta*mean· x·

5. }

invalid syntax

r(198);

. scalar 2*2

2 invalid name

r(198);

. di 2*2

. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. foreach x of varlist $yandxforhausman {

2. by id: egen mean·x· =mean(·x·)

3. generate md·x· = ·x· - mean·x·

4. generate red·x· = ·x· - theta*mean· x·

5. }

·x· invalid name

r(198);
. quietly xtreg lwage $xlist, re

. scalar theta = e(theta)

. global yandxforhausman lwage exp exp2 wks

. foreach x of varlist $yandxforhausman {

2. by id: egen meanf =mean(f)

3. generate md·f· = ·f· - mean·f·

4. generate red·f· = ·x· - theta*mean· f·

5. }

·f· invalid name

r(198);

. xtreg lwage exp exp2 wks ed, pa corr(ar 2) vce(robust)

Iteration 1: tolerance = .02245275

Iteration 2: tolerance = .02001357

Iteration 3: tolerance = .00991542

Iteration 4: tolerance = .0055136

Iteration 5: tolerance = .00323279

Iteration 6: tolerance = .00194929

Iteration 7: tolerance = .00119421

Iteration 8: tolerance = .00073853

Iteration 9: tolerance = .00045933

Iteration 10: tolerance = .00028668

Iteration 11: tolerance = .00017931

Iteration 12: tolerance = .00011231

Iteration 13: tolerance = .0000704

Iteration 14: tolerance = .00004415

Iteration 15: tolerance = .0000277

Iteration 16: tolerance = .00001738

Iteration 17: tolerance = .00001091

Iteration 18: tolerance = 6.847e-06

Iteration 19: tolerance = 4.298e-06

Iteration 20: tolerance = 2.698e-06

Iteration 21: tolerance = 1.693e-06

Iteration 22: tolerance = 1.063e-06

Iteration 23: tolerance = 6.673e-07

GEE population-averaged model Number of obs = 4165

Group and time vars: id t Number of groups = 595

Link: identity Obs per group: min = 7

Family: Gaussian avg = 7.0

Correlation: AR(2) max = 7

Wald chi2(4) = 873.28

Scale parameter: .1966639 Prob > chi2 = 0.0000

(Std. Err. adjusted for clustering on id)

------------------------------------------------------------------------------

| Semirobust

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .0718915 .003999 17.98 0.000 .0640535 .0797294

exp2 | -.0008966 .0000933 -9.61 0.000 -.0010794 -.0007137

wks | .0002964 .0010553 0.28 0.779 -.001772 .0023647

ed | .0905069 .0060161 15.04 0.000 .0787156 .1022982

 _cons | 4.526381 .1056897 42.83 0.000 4.319233 4.733529

------------------------------------------------------------------------------

. xtsum lwage exp exp2 wks ed, pa corr(ar 2) vce(robust)

option pa not allowed

r(198);

. xtreg lwage exp exp2 wks ed, be vce(bootstrap)

(running xtreg on estimation sample)

Bootstrap replications (50)

----+--- 1 ---+--- 2 ---+--- 3 ---+--- 4 ---+--- 5

.................................................. 50

Between regression (regression on group means) Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.1357 Obs per group: min = 7

between = 0.3264 avg = 7.0

overall = 0.2723 max = 7

Wald chi(4) = 250.93

sd(u_i + avg(e_i.))= .324656 Prob > chi2 = 0.0000

(Replications based on 595 clusters in id)

------------------------------------------------------------------------------

| Observed Bootstrap Normal-based

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------
 exp | .038153 .0060873 6.27 0.000 .026222 .0500839

exp2 | -.0006313 .0001455 -4.34 0.000 -.0009164 -.0003461

wks | .0130903 .0047118 2.78 0.005 .0038553 .0223252

ed | .0737838 .005392 13.68 0.000 .0632157 .0843518

_cons | 4.683039 .2442383 19.17 0.000 4.204341 5.161737

------------------------------------------------------------------------------

. xtreg lwage exp exp2 wks ed, fe vce(cluster id)

note: ed omitted because of collinearity

Fixed-effects (within) regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6566 Obs per group: min = 7

between = 0.0276 avg = 7.0

overall = 0.0476 max = 7

F(3,594) = 1059.72

corr(u_i, Xb) = -0.9107 Prob > F = 0.0000

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .1137879 .0040289 28.24 0.000 .1058753 .1217004

exp2 | -.0004244 .0000822 -5.16 0.000 -.0005858 -.0002629

wks | .0008359 .0008697 0.96 0.337 -.0008721 .0025439

ed | 0 (omitted)
 _cons | 4.596396 .0600887 76.49 0.000 4.478384 4.714408

-------------+----------------------------------------------------------------

sigma_u | 1.0362039

sigma_e | .15220316

rho | .97888036 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. xtsum id t lYage ed exp exp2 Yks south tdum1

variable lYage not found

r(111);

. xtsum id t lwage ed exp exp2 wks south tdum1

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

id overall | 298 171.7821 1 595 | N = 4165

between | 171.906 1 595 | n= 595

within | 0 298 298 | T= 7

| |

t overall | 4 2.00024 1 7| N = 4165

between | 0 4 4| n= 595

within | 2.00024 1 7| T= 7

| |

lwage overall | 6.676346 .4615122 4.60517 8.537 | N = 4165

between | .3942387 5.3364 7.813596 | n= 595

within | .2404023 4.781808 8.621092 | T= 7

| |

ed overall | 12.84538 2.787995 4 17 | N = 4165

between | 2.790006 4 17 | n= 595

 within | 0 12.84538 12.84538 | T= 7

| |

exp overall | 19.85378 10.96637 1 51 | N = 4165

between | 10.79018 4 48 | n= 595

within | 2.00024 16.85378 22.85378 | T= 7

| |

exp2 overall | 514.405 496.9962 1 2601 | N = 4165

between | 489.0495 20 2308 | n= 595

within | 90.44581 231.405 807.405 | T= 7

| |

wks overall | 46.81152 5.129098 5 52 | N = 4165

between | 3.284016 31.57143 51.57143 | n= 595

within | 3.941881 12.2401 63.66867 | T= 7

| |

south overall | .2902761 .4539442 0 1| N = 4165

between | .4489462 0 1| n= 595

within | .0693042 -.5668667 1.147419 | T= 7

| |

tdum1 overall | .1428571 .3499691 0 1| N = 4165

between | 0 .1428571 .1428571 | n= 595

within | .3499691 0 1| T= 7

. . xtreg lwage exp exp2 wks ed, be

Between regression (regression on group means) Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.1357 Obs per group: min = 7

between = 0.3264 avg = 7.0

 overall = 0.2723 max = 7

F(4,590) = 71.48

sd(u_i + avg(e_i.))= .324656 Prob > F = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .038153 .0056967 6.70 0.000 .0269647 .0493412

exp2 | -.0006313 .0001257 -5.02 0.000 -.0008781 -.0003844

wks | .0130903 .0040659 3.22 0.001 .0051048 .0210757

ed | .0737838 .0048985 15.06 0.000 .0641632 .0834044

_cons | 4.683039 .2100989 22.29 0.000 4.270407 5.095672

------------------------------------------------------------------------------

. xtreg l11age exp exp2 wks ed, fe v ce( cluster id)

variable l11age not found

r(111);

. xtreg lwage exp exp2 wks ed, fe v ce( cluster id)

option v not allowed

r(198);

. xtreg lwage exp exp2 wks ed, fe vce( cluster id)

note: ed omitted because of collinearity

Fixed-effects (within) regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6566 Obs per group: min = 7

between = 0.0276 avg = 7.0

overall = 0.0476 max = 7

F(3,594) = 1059.72

corr(u_i, Xb) = -0.9107 Prob > F = 0.0000

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .1137879 .0040289 28.24 0.000 .1058753 .1217004

exp2 | -.0004244 .0000822 -5.16 0.000 -.0005858 -.0002629

wks | .0008359 .0008697 0.96 0.337 -.0008721 .0025439

ed | 0 (omitted)

_cons | 4.596396 .0600887 76.49 0.000 4.478384 4.714408

-------------+----------------------------------------------------------------

sigma_u | 1.0362039

sigma_e | .15220316

rho | .97888036 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. global xlist exp exp2 wks ed

. quietly regress lwage $xlist, vce (cluster id)

. estimates store OLS_rob

. quietly xtreg lwage $xlist, be

. estimates store BE

. quietly xtreg lwage $x list, fe

variable list not found

r(111);

. quietly xtreg lwage $xlist, fe

. estimates store FE

. quietly xtreg lwage $x list, fe vce (robust)

variable list not found

r(111);

. quietly xtreg lwage $xlist, fe vce (robust)

. estimates store FE_rob

. quietly xtreg lwage $xlist, re

. estimates store RE

. quietly xtreg lwage $xlist, re vce (robust)

. estimates store RE_rob

. estimates table OLS_rob BE FE FE_rob RE RE_rob , b se stats(N r2 r2_o r2_b r2_w sigma_u
sigma_e rho) b(/.7.4f)

invalid display format /.7.4f

r(120);

. estimates table OLS_rob BE FE FE_rob RE RE_rob , b se stats(N r2 r2_o r2_b r2_w sigma_u
sigma_e rho) b(%7.4f)

--------------------------------------------------------------------------------------

Variable | OLS_rob BE FE FE_rob RE RE_rob

-------------+------------------------------------------------------------------------

exp | 0.0447 0.0382 0.1138 0.1138 0.0889 0.0889

| 0.0054 0.0057 0.0025 0.0040 0.0028 0.0040

exp2 | -0.0007 -0.0006 -0.0004 -0.0004 -0.0008 -0.0008

| 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001

wks | 0.0058 0.0131 0.0008 0.0008 0.0010 0.0010

| 0.0019 0.0041 0.0006 0.0009 0.0007 0.0009

ed | 0.0760 0.0738 (omitted) (omitted) 0.1117 0.1117

| 0.0052 0.0049 0.0061 0.0084

_cons | 4.9080 4.6830 4.5964 4.5964 3.8294 3.8294

| 0.1400 0.2101 0.0389 0.0601 0.0936 0.1334

-------------+------------------------------------------------------------------------

N| 4165 4165 4165 4165 4165 4165

r2 | 0.2836 0.3264 0.6566 0.6566

r2_o | 0.2723 0.0476 0.0476 0.1830 0.1830

r2_b | 0.3264 0.0276 0.0276 0.1716 0.1716

r2_w | 0.1357 0.6566 0.6566 0.6340 0.6340

sigma_u | 1.0362 1.0362 0.3195 0.3195

sigma_e | 0.1522 0.1522 0.1522 0.1522

rho | 0.9789 0.9789 0.8151 0.8151

--------------------------------------------------------------------------------------

legend: b/se

. global xlist

. . quietly regress lwage $xlist, vce (cluster id)

. . estimates store OLS_rob

. . quietly xtreg lwage $xlist, be

. . estimates store BE

. quietly xtreg lwage $xlist, fe

.
.

. . estimates store FE

. . quietly xtreg lwage $xlist, fe vce (robust)

last test not found

r(302);

. . estimates store FE_rob

. . quietly xtreg lwage $xlist, re

. . estimates store RE

.
.

..

. . quietly xtreg lwage $xlist, re vce (robust)

. . estimates store RE_rob

. . estimates table OLS_rob BE FE FE_rob RE RE_rob , b se stats(N r2 r2_o r2_b r2_w sigma_u
sigma_e rho) b(%7.4f)

FE_rob estimation results do not have e(b) and e(V)

r(321);

. global xlist exp exp2 wks ed

. sum wage

variable wage not found

r(111);

. sum lwage

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------
 lwage | 4165 6.676346 .4615122 4.60517 8.537

. gen mean wage

=exp required

r(100);

. gen meanwage= lwage-6.68

meanwage already defined

r(110);

. xtsum lage

variable lage not found

r(111);

. xtsum lwage

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

lwage overall | 6.676346 .4615122 4.60517 8.537 | N = 4165

between | .3942387 5.3364 7.813596 | n= 595

within | .2404023 4.781808 8.621092 | T= 7

. graph twoway (scatter lwage ed) (qfit lwage ed)

. gen meanwag= lwage-meanwage

. xtwum meanwag

unrecognized command: xtwum

r(199);
. xtsum meanwag

Variable | Mean Std. Dev. Min Max | Observations

-----------------+--------------------------------------------+----------------

meanwag overall | 9.97e-08 .4615122 -2.071177 1.860653 | N = 4165

between | .3942387 -1.339946 1.137249 | n= 595

within | .2404023 -1.894538 1.944746 | T= 7

. egen meanwage=mean(lwage)

meanwage already defined

r(110);

. xtsum grandmean

variable grandmean not found

r(111);

. by id: egen meanwage=mean(lwage)

meanwage already defined

r(110);

. by id: egen meanwage2=mean(lwage)

. global xlist exp exp2 wks ed

. reg lwage $xlist, vce(cluster id)

Linear regression Number of obs = 4165

F( 4, 594) = 72.58
 Prob > F = 0.0000

R-squared = 0.2836

Root MSE = .39082

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .044675 .0054385 8.21 0.000 .0339941 .055356

exp2 | -.0007156 .0001285 -5.57 0.000 -.0009679 -.0004633

wks | .005827 .0019284 3.02 0.003 .0020396 .0096144

ed | .0760407 .0052122 14.59 0.000 .0658042 .0862772

_cons | 4.907961 .1399887 35.06 0.000 4.633028 5.182894

------------------------------------------------------------------------------

. estimates store OLS_rob

. xtreg lwage #list, be

# invalid name

r(198);

. xtreg lwage $list, be

Between regression (regression on group means) Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = . Obs per group: min = 7

between = 0.0000 avg = 7.0

 overall = . max = 7

F(0,594) = 0.00

sd(u_i + avg(e_i.))= .3942387 Prob > F = .

------------------------------------------------------------------------------

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

_cons | 6.676346 .0161622 413.08 0.000 6.644604 6.708088

------------------------------------------------------------------------------

. estimates store BE

. xtreg lwage $xlist, fe

note: ed omitted because of collinearity

Fixed-effects (within) regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6566 Obs per group: min = 7

between = 0.0276 avg = 7.0

overall = 0.0476 max = 7

F(3,3567) = 2273.74

corr(u_i, Xb) = -0.9107 Prob > F = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------
 exp | .1137879 .0024689 46.09 0.000 .1089473 .1186284

exp2 | -.0004244 .0000546 -7.77 0.000 -.0005315 -.0003173

wks | .0008359 .0005997 1.39 0.163 -.0003399 .0020116

ed | 0 (omitted)

_cons | 4.596396 .0389061 118.14 0.000 4.520116 4.672677

-------------+----------------------------------------------------------------

sigma_u | 1.0362039

sigma_e | .15220316

rho | .97888036 (fraction of variance due to u_i)

------------------------------------------------------------------------------

F test that all u_i=0: F(594, 3567) = 56.52 Prob > F = 0.0000

. estimates store FE

. xtreg lwage $xlist, fe vce (robust)

note: ed omitted because of collinearity

Fixed-effects (within) regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6566 Obs per group: min = 7

between = 0.0276 avg = 7.0

overall = 0.0476 max = 7

F(3,594) = 1059.72

corr(u_i, Xb) = -0.9107 Prob > F = 0.0000

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------
 | Robust

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .1137879 .0040289 28.24 0.000 .1058753 .1217004

exp2 | -.0004244 .0000822 -5.16 0.000 -.0005858 -.0002629

wks | .0008359 .0008697 0.96 0.337 -.0008721 .0025439

ed | 0 (omitted)

_cons | 4.596396 .0600887 76.49 0.000 4.478384 4.714408

-------------+----------------------------------------------------------------

sigma_u | 1.0362039

sigma_e | .15220316

rho | .97888036 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. estimates store FE_rob

. xtreg lwage $lxist, re

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.0000 Obs per group: min = 7

between = 0.0000 avg = 7.0

overall = 0.0000 max = 7

Wald chi2(0) = .

corr(u_i, X) = 0 (assumed) Prob > chi2 = .

------------------------------------------------------------------------------
 lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

_cons | 6.676346 .0161622 413.08 0.000 6.644669 6.708024

-------------+----------------------------------------------------------------

sigma_u | .38183016

sigma_e | .25963301

rho | .68382658 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. estimates store RE

. xtreg lwage $lxist, re vce (robust)

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.0000 Obs per group: min = 7

between = 0.0000 avg = 7.0

overall = 0.0000 max = 7

Wald chi2(0) = .

corr(u_i, X) = 0 (assumed) Prob > chi2 = .

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

_cons | 6.676346 .0161622 413.08 0.000 6.644669 6.708024

-------------+----------------------------------------------------------------

sigma_u | .38183016

sigma_e | .25963301

rho | .68382658 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. estimates store RE_rob

. estimates table OLS_rob BE FE FE_rob RE RE_rob, b se stats (N r2 r2_o r2_b r2_w sigma_u
sigma_e rho)

--------------------------------------------------------------------------------------------

Variable | OLS_rob BE FE FE_rob RE RE_rob

-------------+------------------------------------------------------------------------------

exp | .04467505 .11378786 .11378786

| .00543845 .00246888 .00402887

exp2 | -.00071563 -.00042437 -.00042437

| .00012847 .00005463 .00008221

wks | .00582698 .00083588 .00083588

| .00192844 .00059967 .00086968

ed | .07604069 (omitted) (omitted)

| .00521218

_cons | 4.9079608 6.6763464 4.5963962 4.5963962 6.6763464 6.6763464

| .13998868 .01616221 .03890613 .06008865 .01616221 .01616221

-------------+------------------------------------------------------------------------------

N| 4165 4165 4165 4165 4165 4165

r2 | .28356078 0 .65662995 .65662995

r2_o | . .04760429 .04760429 0 0

r2_b | 0 .02762965 .02762965 0 0

 r2_w | . .65662995 .65662995 0 0

sigma_u | 1.0362039 1.0362039 .38183016 .38183016

sigma_e | .15220316 .15220316 .25963301 .25963301

rho | .97888036 .97888036 .68382658 .68382658

--------------------------------------------------------------------------------------------

legend: b/se

. sum ed

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------

ed | 4165 12.84538 2.787995 4 17

. xtreg lwage $xlist, be

Between regression (regression on group means) Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.1357 Obs per group: min = 7

between = 0.3264 avg = 7.0

overall = 0.2723 max = 7

F(4,590) = 71.48

sd(u_i + avg(e_i.))= .324656 Prob > F = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .038153 .0056967 6.70 0.000 .0269647 .0493412

 exp2 | -.0006313 .0001257 -5.02 0.000 -.0008781 -.0003844

wks | .0130903 .0040659 3.22 0.001 .0051048 .0210757

ed | .0737838 .0048985 15.06 0.000 .0641632 .0834044

_cons | 4.683039 .2100989 22.29 0.000 4.270407 5.095672

------------------------------------------------------------------------------

. estimates store BE

. estimates table OLS_rob BE FE FE_rob RE RE_rob, b se stats (N r2 r2_o r2_b r2_w sigma_u
sigma_e rho)

--------------------------------------------------------------------------------------------

Variable | OLS_rob BE FE FE_rob RE RE_rob

-------------+------------------------------------------------------------------------------

exp | .04467505 .03815295 .11378786 .11378786

| .00543845 .00569666 .00246888 .00402887

exp2 | -.00071563 -.00063127 -.00042437 -.00042437

| .00012847 .00012568 .00005463 .00008221

wks | .00582698 .01309028 .00083588 .00083588

| .00192844 .00406592 .00059967 .00086968

ed | .07604069 .07378378 (omitted) (omitted)

| .00521218 .00489848

_cons | 4.9079608 4.6830393 4.5963962 4.5963962 6.6763464 6.6763464

| .13998868 .21009889 .03890613 .06008865 .01616221 .01616221

-------------+------------------------------------------------------------------------------

N| 4165 4165 4165 4165 4165 4165

r2 | .28356078 .32641265 .65662995 .65662995

r2_o | .27232983 .04760429 .04760429 0 0

r2_b | .32641265 .02762965 .02762965 0 0

 r2_w | .13567111 .65662995 .65662995 0 0

sigma_u | 1.0362039 1.0362039 .38183016 .38183016

sigma_e | .15220316 .15220316 .25963301 .25963301

rho | .97888036 .97888036 .68382658 .68382658

--------------------------------------------------------------------------------------------

legend: b/se

. xtreg lwage $xlist, re

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6340 Obs per group: min = 7

between = 0.1716 avg = 7.0

overall = 0.1830 max = 7

Wald chi2(4) = 3012.45

corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .0888609 .0028178 31.54 0.000 .0833382 .0943837

exp2 | -.0007726 .0000623 -12.41 0.000 -.0008946 -.0006505

wks | .0009658 .0007433 1.30 0.194 -.000491 .0024226

ed | .1117099 .0060572 18.44 0.000 .0998381 .1235818

_cons | 3.829366 .0936336 40.90 0.000 3.645848 4.012885

-------------+----------------------------------------------------------------

sigma_u | .31951859
 sigma_e | .15220316

rho | .81505521 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. estimates store RE

. xtreg lwage $xlist, re vce (robust)

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6340 Obs per group: min = 7

between = 0.1716 avg = 7.0

overall = 0.1830 max = 7

Wald chi2(4) = 1598.50

corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .0888609 .0039992 22.22 0.000 .0810227 .0966992

exp2 | -.0007726 .0000896 -8.62 0.000 -.0009481 -.000597

wks | .0009658 .0009259 1.04 0.297 -.000849 .0027806

ed | .1117099 .0083954 13.31 0.000 .0952552 .1281647

_cons | 3.829366 .1333931 28.71 0.000 3.567921 4.090812

-------------+----------------------------------------------------------------
 sigma_u | .31951859

sigma_e | .15220316

rho | .81505521 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. estimates store RE_rob

. estimates table OLS_rob BE FE FE_rob RE RE_rob, b se stats (N r2 r2_o r2_b r2_w sigma_u
sigma_e rho)

--------------------------------------------------------------------------------------------

Variable | OLS_rob BE FE FE_rob RE RE_rob

-------------+------------------------------------------------------------------------------

exp | .04467505 .03815295 .11378786 .11378786 .08886094 .08886094

| .00543845 .00569666 .00246888 .00402887 .00281776 .00399919

exp2 | -.00071563 -.00063127 -.00042437 -.00042437 -.00077256 -.00077256

| .00012847 .00012568 .00005463 .00008221 .00006226 .00008957

wks | .00582698 .01309028 .00083588 .00083588 .00096577 .00096577

| .00192844 .00406592 .00059967 .00086968 .00074329 .00092593

ed | .07604069 .07378378 (omitted) (omitted) .11170995 .11170995

| .00521218 .00489848 .00605716 .00839543

_cons | 4.9079608 4.6830393 4.5963962 4.5963962 3.8293663 3.8293663

| .13998868 .21009889 .03890613 .06008865 .09363358 .1333931

-------------+------------------------------------------------------------------------------

N| 4165 4165 4165 4165 4165 4165

r2 | .28356078 .32641265 .65662995 .65662995

r2_o | .27232983 .04760429 .04760429 .18304568 .18304568

r2_b | .32641265 .02762965 .02762965 .17162628 .17162628

r2_w | .13567111 .65662995 .65662995 .63401042 .63401042

 sigma_u | 1.0362039 1.0362039 .31951859 .31951859

sigma_e | .15220316 .15220316 .15220316 .15220316

rho | .97888036 .97888036 .81505521 .81505521

--------------------------------------------------------------------------------------------

legend: b/se

. hausman FE RE, sigmamore

---- Coefficients ----

| (b) (B) (b-B) sqrt(diag(V_b-V_B))

| FE RE Difference S.E.

-------------+----------------------------------------------------------------

exp | .1137879 .0888609 .0249269 .0012778

exp2 | -.0004244 -.0007726 .0003482 .0000285

wks | .0008359 .0009658 -.0001299 .0001108

------------------------------------------------------------------------------

b = consistent under Ho and Ha; obtained from xtreg

B = inconsistent under Ha, efficient under Ho; obtained from xtreg

Test: Ho: difference in coefficients not systematic

chi2(3) = (b-B)'[(V_b-V_B)^(-1)](b-B)

= 1513.02

Prob>chi2 = 0.0000

. di .0249269 / .0012778

19.507669

. di .0003482 / .0000285
12.217544

. sort id

. by id: egen meanexp = mean(exp)

. by id: egen meanexp2 = mean(exp2)

. by id: egen meanwks= mean(wks)

. by id: egen meanlwage = mean(lwage)

. gen mdexp= exp-meanexp

. gen mdexp2= exp2-meanexp2

. gen mdwks= wks-meanwks

. xtreg lwage exp exp2 wks ed, re

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6340 Obs per group: min = 7

between = 0.1716 avg = 7.0

overall = 0.1830 max = 7

Wald chi2(4) = 3012.45

corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .0888609 .0028178 31.54 0.000 .0833382 .0943837

exp2 | -.0007726 .0000623 -12.41 0.000 -.0008946 -.0006505

wks | .0009658 .0007433 1.30 0.194 -.000491 .0024226

ed | .1117099 .0060572 18.44 0.000 .0998381 .1235818

_cons | 3.829366 .0936336 40.90 0.000 3.645848 4.012885

-------------+----------------------------------------------------------------

sigma_u | .31951859

sigma_e | .15220316

rho | .81505521 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. scalar theta= e(theta)

. display theta

.82280511

. gen redexp= exp-(theta*meanexp)

. gen redexp2= exp2-(theta*meanexp2)

. gen redwks= wks-(theta*meanwks)

. gen redlwage= lwage- (theta*meanlwage)

. reg redexp redexp2 redwks redlwage mdexp mdexp2 mdwks, vce (cluster id)
Linear regression Number of obs = 4165

F( 6, 594) = .

Prob > F = 0.0000

R-squared = 0.9778

Root MSE = .41278

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

redexp | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

redexp2 | .0215215 .000305 70.57 0.000 .0209225 .0221204

redwks | .0147968 .0304425 0.49 0.627 -.0449911 .0745848

redlwage | .2458555 .0572145 4.30 0.000 .1334882 .3582227

mdexp | .9720246 .0065122 149.26 0.000 .9592348 .9848145

mdexp2 | -.0214171 .0003137 -68.27 0.000 -.0220332 -.0208011

mdwks | -.0150024 .0304476 -0.49 0.622 -.0748004 .0447957

_cons | 1.14272 .2694614 4.24 0.000 .6135072 1.671933

------------------------------------------------------------------------------

. test mdexp mdexp2 mdwks

( 1) mdexp = 0

( 2) mdexp2 = 0

( 3) mdwks = 0

F( 3, 594) = 7510.14

Prob > F = 0.0000

. reg lwage exp exp2 wks ed, vce (cluster id)

Linear regression Number of obs = 4165

F( 4, 594) = 72.58

Prob > F = 0.0000

R-squared = 0.2836

Root MSE = .39082

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .044675 .0054385 8.21 0.000 .0339941 .055356

exp2 | -.0007156 .0001285 -5.57 0.000 -.0009679 -.0004633

wks | .005827 .0019284 3.02 0.003 .0020396 .0096144

ed | .0760407 .0052122 14.59 0.000 .0658042 .0862772

_cons | 4.907961 .1399887 35.06 0.000 4.633028 5.182894

------------------------------------------------------------------------------

. predict xbols, xb

. xtreg lwage exp exp2 wks ed, re

Random-effects GLS regression Number of obs = 4165

Group variable: id Number of groups = 595

R-sq: within = 0.6340 Obs per group: min = 7

 between = 0.1716 avg = 7.0

overall = 0.1830 max = 7

Wald chi2(4) = 3012.45

corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000

------------------------------------------------------------------------------

lwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp | .0888609 .0028178 31.54 0.000 .0833382 .0943837

exp2 | -.0007726 .0000623 -12.41 0.000 -.0008946 -.0006505

wks | .0009658 .0007433 1.30 0.194 -.000491 .0024226

ed | .1117099 .0060572 18.44 0.000 .0998381 .1235818

_cons | 3.829366 .0936336 40.90 0.000 3.645848 4.012885

-------------+----------------------------------------------------------------

sigma_u | .31951859

sigma_e | .15220316

rho | .81505521 (fraction of variance due to u_i)

------------------------------------------------------------------------------

. predict xbre, xb

. predict xburre, xbu

. sum lwage xbols xbre xbure

variable xbure not found

r(111);

. correlate lwage xbols xbre xbure

variable xbure not found

r(111);

. sum lwage xbols xbre xburre

Variable | Obs Mean Std. Dev. Min Max

-------------+--------------------------------------------------------

lwage | 4165 6.676346 .4615122 4.60517 8.537

xbols | 4165 6.676346 .2457572 5.850037 7.200861

xbre | 4165 6.676346 .6205324 5.028067 8.22958

xburre | 4165 6.676346 .4082951 5.29993 7.968179

. correlate lwage xbols xbre xburre

(obs=4165)

| lwage xbols xbre xburre

-------------+------------------------------------

lwage | 1.0000

xbols | 0.5325 1.0000

xbre | 0.4278 0.8034 1.0000

xburre | 0.9375 0.6019 0.4836 1.0000

. sort id t

. reg D.(lwage exp exp2 wks ed), vce(cluster id) noconstant

note: _delete omitted because of collinearity

Linear regression Number of obs = 3570

 F( 3, 594) = 1035.19

Prob > F = 0.0000

R-squared = 0.2209

Root MSE = .18156

(Std. Err. adjusted for 595 clusters in id)

------------------------------------------------------------------------------

| Robust

D.lwage | Coef. Std. Err. t P>|t| [95% Conf. Interval]

-------------+----------------------------------------------------------------

exp |

D1. | .1170654 .0040974 28.57 0.000 .1090182 .1251126

exp2 |

D1. | -.0005321 .0000808 -6.58 0.000 -.0006908 -.0003734

wks |

D1. | -.0002683 .0011783 -0.23 0.820 -.0025824 .0020459

ed |

D1. | 0 (omitted)

------------------------------------------------------------------------------