Hi everyone,
I am currently using Stata 16. For my project, I am trying to observe the effect of undergraduate education background (my INDEPENDENT variable) on my dependent variable. My education background variable is grouped into Engineering, Financial, Law and Others. I tried to create a dummy variable to categorize them into 4 different groups. First I used:
Then I used:
This second step created dummies for each group. When I use these dummy variables in my regression, I get very large p-value. Is there something wrong with my approach? I am trying to re-do an analysis I saw somewhere and I took same step as them. I needed advice on whether my method of dummy variable creation is incorrect, or if maybe the relation I am trying to observe is not there?
I was not sure which thread would best fit this question, so I am posting it here. I would appreciate any help that you can provide me.
Thank you!
I am currently using Stata 16. For my project, I am trying to observe the effect of undergraduate education background (my INDEPENDENT variable) on my dependent variable. My education background variable is grouped into Engineering, Financial, Law and Others. I tried to create a dummy variable to categorize them into 4 different groups. First I used:
Code:
encode EDUCATION, gen(qualification)
Code:
xi: reg DEP_VAR i.qualification
I was not sure which thread would best fit this question, so I am posting it here. I would appreciate any help that you can provide me.
Thank you!
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