District-year FE for a two year period model

[Raphael George]

Hello,
I am running a model that has individual Fixed effects and survey fixed effects.
And its has data from two waves of a longitudinal survey. So the time period is 2 years.
I employed district -Survey Fixed effects as well to capture any changes that might happen at district level over the two survey years.

Is it wrong to do this?
Will the individual fixed effects and survey fixed effects already incorporate these variations?

Since its a two period model I coded the District-Survey FE like this

egen district_id =group(STATEID DISTID)
egen distyear= group(district_id SURVEY)


and then in the model incorporated it like this

xtset Individualid

xtreg y x i.SURVEY i.distyear ,fe cl(IDPSU)

[Carlo Lazzaro]

Raphael:
your question looks a tad ill-posed, as, methodologically speaking, right or wrong are not the appropriate categories here.
The issues are:
1) what are the goals of your research?
2) as you know, the -fe- estimator wipes out (due to demeaning) all time-invariant variables. As States and Districts are not expected to change (unless your -panelids- are person moving across different States and Districts during the timespan the panel stretches over), as expected, the -fe- estimator will give you back no coefficient for those predictors;
3) you mention survey with two waves of data. Therefore, it is not clear (to me, at any rate) whether you're dealing with a panel or a repeated cross-sectional dataset.

[Raphael George]

Im dealing with a panel data, using individual FE.
The goal of my research is to check whether the death of a family member across the survey waves ( given they were alive in wave 1) increases labor market participation for the individual.
Suppose a district may receive technical support from the government to increase its agricultural production in between survey rounds, I employed district-by-survey FE to make sure such other time-variant changes (other than the death of a family member) are not what is leading the labor market participation.

[Carlo Lazzaro]

Raphael:
you may want to take a look at the community-contributed module -reghdfe-.