I have a panel data set. My dependent variable (wage) is reported every wave. However, participants also report on their professional activities since the last interview, so I have several spells per person per wave. My Independent variable (participation in educational programs) is reported there. (The spells include of course more Information than that, but those are of no importance to my analysis.) I want to conduct a fixed-effects analysis, regressing wage on the participation.
I have two problems:
First, how can I find out how often someone participated in the program during one wave? Because it would matter if someone participated once or twice.
Second, how can I construct a time indicator? Right now, I have repeated unit-observation per wave and of course the treatment might change from spell to spell, but I dont have wage data for every spell, so I cannot use the spell indicator as a time variable..
For the second problem I have thought of converting the spell data into sequences (probably using months, because the interviews are conducted anually), indicating with 0 and 1 where people participated or did not participated for every wave, then using an if-statement to construct a variable "participated yes/no" for every wave.
Would that be reasonable or is there maybe a better way?
I have two problems:
First, how can I find out how often someone participated in the program during one wave? Because it would matter if someone participated once or twice.
Second, how can I construct a time indicator? Right now, I have repeated unit-observation per wave and of course the treatment might change from spell to spell, but I dont have wage data for every spell, so I cannot use the spell indicator as a time variable..
For the second problem I have thought of converting the spell data into sequences (probably using months, because the interviews are conducted anually), indicating with 0 and 1 where people participated or did not participated for every wave, then using an if-statement to construct a variable "participated yes/no" for every wave.
Would that be reasonable or is there maybe a better way?
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