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  • village fixed effect and cluster

    Hi,
    I need your help to solve my problem to write a paper.
    I was wondering what exactly the cluster and village fixed effect mean and when to use. I have a sigle-year corss-section data including 24 provinces (all of the provinces in the country) and each provinces has different number of household and each household has all of the member of households. What I want to do is to analyze the determinants for school attendence using logit model, so targeted age is from 7 to 18. And, I divided the provinces into 2 categories by the population; urban and rural (the original data does not include this dummy), and estimated it. But, I have faced the term "village fixed effect" or "cluster standard error" a lot in a lot of papers and read a few articles and papers about that. But, it is difficult for me to understand this thoroughly. So, my question is, should I consider these for my analysis? And if so, how can I introduce this concept into my command in STATA? I just used "logit yvar xvar" in my command, and I got the result that I expected. But, if I do have to consider village fixed effect or cluster, what should I put in the dataset for village fixed effect and what kind of option for cluster?

  • #2
    Shisho:
    as you seemingly have households members nested within households which, in turn, are nested within provinces, you may want to take a look at -help meqrlogit-.
    Kind regards,
    Carlo
    (Stata 18.0 SE)

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    • #3
      Hi Carlo, Thank you for your advice!
      One more question, if I regress this using OLS, do I have to use cluster? or robust?

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      • #4
        Shisho:
        you have to cluster at the level suggested by the literature in your research field.
        Kind regards,
        Carlo
        (Stata 18.0 SE)

        Comment

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