Using data on sleep in 1975. I have variables earns74(yearly earning in 1974), hrwage(current hourly wage), age, educ, totwork (total minutes worked per week), and yngkid (dummy variable if they have young children). My dependent variable is sleep (minutes slept per wek). Im actually looking for a casual relationship so my variables of interest are hrwage, and possibly earns74.
I am trying to run two separate IV test on my regression, but I have cross sectional data and I'm having some issues figuring it out. I would also like to run a heckman selection for my hrwage variable and i don't know which i should run first (IV or Heckman). I think i should run an IV first in order to solve my endogeneity issues, then run a heckman to solve for the limitations in my data for hrwage.
IV: Could someone help me out with a code or in the very least explain how i know that the IV is goof based on the actual numbers that i would get in stata. The more i research the more confused i get. I should note that my IV do not have to be perfect i just have to run some methods and see how it changes my regression results. I want to test union(which is a dummy variable... not sure if that can be used as an IV) as well as experience and spousal wage. What kind of numbers am i looking for
Heckman: since i plan to use it on a independent variable as opposed to dependent, i would make my dummy variable in the first stage a dependent variable. I was told that i need to have another set of info on the individuals (not just the wages, since you don't know the nature of missing values) but im not sure what he meant exactly.
Any assistance is appreciated.
I am trying to run two separate IV test on my regression, but I have cross sectional data and I'm having some issues figuring it out. I would also like to run a heckman selection for my hrwage variable and i don't know which i should run first (IV or Heckman). I think i should run an IV first in order to solve my endogeneity issues, then run a heckman to solve for the limitations in my data for hrwage.
IV: Could someone help me out with a code or in the very least explain how i know that the IV is goof based on the actual numbers that i would get in stata. The more i research the more confused i get. I should note that my IV do not have to be perfect i just have to run some methods and see how it changes my regression results. I want to test union(which is a dummy variable... not sure if that can be used as an IV) as well as experience and spousal wage. What kind of numbers am i looking for
Heckman: since i plan to use it on a independent variable as opposed to dependent, i would make my dummy variable in the first stage a dependent variable. I was told that i need to have another set of info on the individuals (not just the wages, since you don't know the nature of missing values) but im not sure what he meant exactly.
Any assistance is appreciated.
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