After FE, test for serial correlation:
xtserial wage experience union Random effects assumes the unobserved panel effects are uncorrelated with your regressors. This is a strong assumption but allows inclusion of time-invariant variables. stata panel data
panel variable: country_id (strongly balanced) time variable: year, 2010 to 2011 delta: 1 unit means every panel has the same time periods. If some years are missing, you will see "unbalanced." Handling Unbalanced Panels Unbalanced panels are common (e.g., firms that enter or exit the sample). Stata handles them gracefully, but you must understand the implications for estimation. After FE, test for serial correlation: xtserial wage
Use reshape long to convert to :
After FE, test for serial correlation:
xtserial wage experience union Random effects assumes the unobserved panel effects are uncorrelated with your regressors. This is a strong assumption but allows inclusion of time-invariant variables.
panel variable: country_id (strongly balanced) time variable: year, 2010 to 2011 delta: 1 unit means every panel has the same time periods. If some years are missing, you will see "unbalanced." Handling Unbalanced Panels Unbalanced panels are common (e.g., firms that enter or exit the sample). Stata handles them gracefully, but you must understand the implications for estimation.
Use reshape long to convert to :