* * Example 7.6 on page 227 * open data wage1.raw data(format=free,org=columns) 1 526 wage educ exper tenure nonwhite female married numdep smsa northcen $ south west construc ndurman trcommpu trade services profserv profocc clerocc servocc lwage expersq tenursq * * These show how to create the squared series * set expersq = exper**2 set tenursq = tenure**2 * * And these are the interactive dummies * set marrmale = married*(1-female) set marrfem = married*female set singfem = (1-married)*female set singmale = (1-married)*(1-female) * linreg lwage # constant marrmale marrfem singfem educ exper expersq tenure tenursq * * Using married women as the base group * linreg lwage # constant marrmale singmale singfem educ exper expersq tenure tenursq * * An alternative is to redoing the regression is to use the SUMMARIZE * instruction, which computes the value and standard error of linear combinations * of the coefficients of the last regression. For instance, the following will * give the estimate of the difference between married and single males, which * could be read off directly from the first form but not the second. * summarize(vector=||0,1,-1,0,0,0,0,0,0||)