Saturday, March 04, 2006
Re: st: Probit analysis with panel data and endogeneous explicative variables
The two-stage regression you describe is certainly not the right way to go, and there are general problems with running a probit with fixed effects in panels (search for "incidental parameters" on google.com, and see e.g. http://www.msu.edu/~ec/faculty/wooldridge/current%20research/panel4r9.pdf), much less with endogenous explanatory variables.
But it looks like you should be using survival analysis, anyway, where the transition from the status of temporary to long-term employee would be the "failure" modeled. See -help st- for more info.
On 3/3/06, Elena Giarda <firstname.lastname@example.org> wrote: > I have a very large data-set of individual earnings, with a panel data > structure, covering the period 1985-2004. I would like to estimate the > probabilities of transition from the status of temporary to long-term > employee.
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