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  • Panel regression - subgroup analysis

    Hello dear community,
    I am currently analyzing a dataset to find out whether treatment effects differ between subgroups.
    I have panel data (or at least i think i have) following individuals that gave answers to surveys at different points in time. The sample is unbalanced. I have answers from different individuals at different points in time. There are two treatments and a control group. Each individual is either in one of the treatments or the control group. The individuals can work in four different sectors (sec0_b sec1_b sec2_b sec3_b).
    I want to find out if the two treatments have a significant impact on tprofits for each of the business sectors. I would also like to control for other factors such as secondaryedu, I_emp, tprofits_b and logage.

    I did not find any evidence which regression to run in theory

    I then ran these different regression but i was not able to interpret the differences

    Pooled OLS: reg tprofits i.treat i.wave $controls if wave>=0 & wave<=7 & sec0_b==1
    Fixed effects: xtreg tprofits i.treat i.wave if wave>=0 & wave<=7 & sec0_b==1, fe cluster(id)
    Random effects: xtreg tprofits i.treat i.wave $controls if wave>=0 & wave<=7 & sec0_b==1, re cluster(id)


    I am relatively new to STATA and statistics and have learned most of my knowledge "on the go" which is why I am sure that I have missed something and would therefore appreciate any hints that lead me towards the most unbiased results.
    Thanks in advance

  • #2
    This looks like pooled cross section to me, unless all individuals are observed in each t. Are the treatments given at the same time?

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    • #3
      Hello, all individuals are not observed in each t but the treatments are given at the same time.
      Is a pooled cross section the same as a pooled OLS?
      Kind regards
      Max

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      • #4
        Max:
        my gut-feeling is that you're dealing with survey waves (hence -the -svy- suite should be something to take a look at).
        If you do not have all the information concerning the survey setup (say, PSU) and you cannot retrieve them, you should probably switch to an OLS. I would not label it as a pooled OLS, as you do not have the same sample measured at different points in time (or, put differently, you do niot have a panel dataset).
        Kind regards,
        Carlo
        (StataNow 18.5)

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        • #5
          You can use fixed effects in this case if you think there's omitted variables at some relevant level they can absorb (e.g., industry, country, etc).

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