Omitted Variables in STATA

[Anuradha Saikia]

How to handle independent variables which are omitted in STATA in fixed effects regression.

[Carlo Lazzaro]

Anuradha:
as this is not your first post, such a broad query can receive a short (and possibly unhelpful) reply.
The most likely reason why the -fe- estimator wipes out independent variables is that they are time-invariant.

[Anuradha Saikia]

Carlo Lazzaro how do I test for the time invariant variables in panel data in STATA. is there a way around it.

[Carlo Lazzaro]

Anuradha:
as per -xttab- entry, Stata .pdf manual:

A time-invariant variable will have a tabulation with within percents of 100:

:

use "https://www.stata-press.com/data/r17/nlswork.dta"
. xttab race

                  Overall             Between            Within
     race |    Freq.  Percent      Freq.  Percent        Percent
----------+-----------------------------------------------------
    White |   20180     70.72      3329     70.66         100.00
    Black |    8051     28.22      1325     28.13         100.00
    Other |     303      1.06        57      1.21         100.00
----------+-----------------------------------------------------
    Total |   28534    100.00      4711    100.00         100.00
                              (n = 4711)

.

[Anuradha Saikia]

Thank you Carlo. This is interesting indeed.