Problems with Dummy creation from percentiles

[Matteo Vidotto]

Hello, I have a variable called "GapfromMedian" (which represents the gap of Leverage that an industry has from the median of the industry)

and a dummy variable named "industry" (which represents the industry in which the firm evolves). From these variables I would like to create a dummy (awayfrom) which takes value :

1, if "GapfromMedian" is <p25 or =>p75

0, if "GapfromMedian" is >=p25 and <p75

To sum up, I have 48 industries, so 48 industries median. Every firm in an industry which is <p25 or =>p75 will have to take value 1 in the new "awayfrom" variable.

If that can help you feel free to look at the attachments.

[George Ford]

This might work.

I assume you have the GapfromMedian generated. You can use egen to get the p25 and p75.

bys industry: egen p25 = pctile(GapfromMedian), p(25)
bys industry: egen p75 = pctile(GapfromMedian), p(75)
g awayfrombig = GapfromMedian<p25 | GapfromMedian>p75

[Matteo Vidotto]

Thanks a lot ! It works amazingly