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  • #16
    Sure,
    this is the code I run on stata:
    Code:
    reg log_trim_earnhrppp_cont_dcl i.vet_yes c.centered_age i.vet_yes#c.centered_age vetcnew female $control8 $book west_europe east_europe north_europe south_europe usa canada japan korea [pw=weight_adjusted] , vce(cluster cntryid)
    This is what I found:
    Click image for larger version

Name:	results3.PNG
Views:	1
Size:	83.0 KB
ID:	1690522


    Sorry for the figure (I did not quite understand how to better incorporate those results in statalist).

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    • #17
      Maria:
      1) 19 clusters are definitely not enough to safely invoke -vce(cluster clusterid)-. Therefore, if you have detectec heteroskedasticity, apply the -robust- option (as you already did). Otherwise, stick with default standdar errors;
      2) run -linktest- but only on the OLS model that gives the fairest and truest view of the data generating process you're studying (testing seven specifications in not the way to go).
      Kind regards,
      Carlo
      (Stata 19.0)

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