Paneldata analysis is an advanced form of linear regression analysis where timedependent variance is adjusted for. This type of analysis has similarities with basic regression analysis (OLS). Among others, the dependent variable (listed first in the
regress-panel expression) is required to measure continuous/metrical values only, e.g. income.
The main difference from OLS (the
regress command) is the way the data need to be organized: A panel format is required, i.e. all variables are to be measured more than one time depending on the number of measurement dates specified through the
import-panel command. A panel dataset will consist of T x N observations/records, where T equals the number of measurment while N represents the population size.
Note: Panel datasets can be very sizeable as each unit is measured more than once, for example by analysing the total population by using 2 measurements the dataset will typically consist of approximately 10 million observations (5 mill. x 2). Thus, use as small populations as necessary, preferably below 1 mill. units. Otherwise the system may be stressed and the executions more timeconsuming as a result.
//Connect to datastore require no.ssb.fdb:13 as db //Create panel dataset (should be as small as necessary) //Population: Individuals who completed a masters degree during the autumn semester 2015 create-dataset population import db/NUDB_AAR_FORSTE_FULLF_HOV as compl_master keep if compl_master > 201507 & compl_master < 201601 //Create a new and empty dataset consisting of the units from the population dataset clone-units population paneldata //Import a set of variables with specific time measurments into the empty dataset use paneldata import-panel db/INNTEKT_WLONN db/SIVSTANDFDT_SIVSTAND db/BEFOLKNING_KOMMNR_FAKTISK 2016-01-01 2017-01-01 2018-01-01 2019-01-01 //Recode and run descriptive and regression analysis rename INNTEKT_WLONN wage generate married = 0 replace married = 1 if SIVSTANDFDT_SIVSTAND == '2' generate oslo = 0 replace oslo = 1 if BEFOLKNING_KOMMNR_FAKTISK == '0301' tabulate-panel married tabulate-panel oslo tabulate-panel married oslo summarize-panel wage transitions-panel oslo married //Execute paneldata regression using fixed and random effects regress-panel wage married oslo, fe regress-panel wage married oslo, re //Perform hausman-test hausman wage married oslo