Stata | Panel Data
Panel data analysis in Stata allows you to observe the same entities (like firms, individuals, or countries) over multiple time periods. This structure is powerful because it helps control for unobserved factors that are constant over time but vary across entities. 1. Data Preparation and Setup
2. Two-Way Fixed Effects (Panel + Time FE)
Controlling for year-specific shocks:
Driscoll-Kraay: Handles cross-sectional dependence. stata panel data
- Generate variables gen tenure_sq = tenure^2 gen lnhours = ln(hours)