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  • Dealing with unbalanced panel data (a theoretical question)

    Dear Statlist:

    I have employee turnover data that spans from 2005-2022. Those are aggregated to the firm level. From 2007-2013, the data was released anually (every September). Starting from 2014, the data is now released quarterly (i.e., March, June, September, and December). The intervention of my interest occured sometime between 2017 2nd and 3rd quarter. Because I want to use all available data, I -xtset- the data with units and the quarterly time variable (-xtset org qdate, quarterly-), resulting in unbalanced panel data. I ran a DID model (-xtreg-) and one of the reviewers are asking for any ideas of the implications of the irrgularly spaced data. I haven't really seriously thought about this as the models ran smoothly (I trust STATA's handling on these types of issues) and results aligned pretty well with my theoretical expectations. But now, I'm not sure how to respond, or, if this was the right way to implement my analysis. Any ideas are appreciated in advance.

  • #2
    Non-random attrition is the main issue for unbalanced panels.

    A bit of self-promotion, but the section 5.3 of https://sjes.springeropen.com/articl...37-024-00123-4 deals with exactly this problem.

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