CPS employment to unemployment transition

[Tariq Abdullah]

Hello stata community,

I have been working with static variable of employment and unemployment with CPS data but for the advancement of my research I need to create a dynamic variable of transition like following instruction:

"one year transition variables will be constructed based on previous year’s information. These variables will include entry into and exit from employment to unemployment/any other employment outcome. Will have to link individuals across years and create two-year panels with a large number of observations to capture employment transition. "

Could anyone who has an experinece with working CPS/ACS data help me to code this dynamic employment transition variable ? Thanks in advance !

[Tariq Abdullah]

For convenience, I have given example of the dataset here.


* Example generated by -dataex-. For more info, type help dataex
clear
input int year byte statefip double incwage byte empstat
2011 23 0 32
2011 23 0 36
2011 23 0 36
2011 23 30000 10
2011 23 0 10
2011 23 0 36
2011 23 24000 10
2011 23 37300 10
2011 23 99999999 0
2011 23 99999999 0
2011 23 99999999 0

end
label values statefip statefip_lbl
label def statefip_lbl 23 "Maine", modify
label values empstat empstat_lbl
label def empstat_lbl 0 "NIU", modify
label def empstat_lbl 10 "At work", modify
label def empstat_lbl 12 "Has job, not at work last week", modify
label def empstat_lbl 21 "Unemployed, experienced worker", modify
label def empstat_lbl 32 "NILF, unable to work", modify
label def empstat_lbl 34 "NILF, other", modify
label def empstat_lbl 36 "NILF, retired", modify