xtivreg, using bootstrapped standard errors by cluster

[Jonathan Horowitz]

I'm trying to run some panel data, and the way the sampling occurred I should bootstrap the standard errors with resampling by cluster (as described in Harden 2011). I've done this successfully with xtreg (fixed effects) but I'm trying to incorporate instrumental variables and I'm getting some error messages.

The data I have is protected, but I can simulate the problem with the nlswork dataset.

cls

webuse nlswork, clear

keep if year==77 | year==78

gen sampleclustervar=1 if idcode<2696
replace sampleclustervar=2 if idcode>2696 & idcode<6000

xtset id year
xtreg ln_wage age tenure hours union, fe vce(bootstrap, reps(1000))  cluster(sampleclustervar) // This line works fine
xtivreg ln_wage age tenure hours (union= south), fe vce(bootstrap, reps(1000))  cluster(sampleclustervar) // This line does not work

Instead, I get an error that says:

option cluster() not allowed
an error occurred when bootstrap executed xtivreg

I'm also open to xtivreg2, if need be.