Hello everyone. I am looking at how student debt affects becoming underemployed at the first job for the college graduates using nlsy97 dataset.
The dependent variable is binary where 1 indicates underemployed and 0 indicates non-underemployed.
The variable of interest is log of student debt amount accumulated during college.
I some some set of controls, and I have the variable indicating the average amount of grant received by individuals, by school types.
I want to use this average grant variable as an instrument for log of student debt and run 2SLS, and I was not sure if I could use the variable that has categorical values (i.e. since it has 6 unique values of average amount for school types). Could you please give me advice if this is feasible? Thank you always for your time and help.
Best,
Jung Hwan Kim
The dependent variable is binary where 1 indicates underemployed and 0 indicates non-underemployed.
The variable of interest is log of student debt amount accumulated during college.
I some some set of controls, and I have the variable indicating the average amount of grant received by individuals, by school types.
I want to use this average grant variable as an instrument for log of student debt and run 2SLS, and I was not sure if I could use the variable that has categorical values (i.e. since it has 6 unique values of average amount for school types). Could you please give me advice if this is feasible? Thank you always for your time and help.
Best,
Jung Hwan Kim
