For real-world applications, basic FE/RE may not suffice. Here are advanced techniques.
Transition probabilities (useful for categorical data like employment status) xttrans dependent_var stata panel data
xtreg wage experience union i.year, fe
(Arellano-Bond/Blundell-Bond estimators). These use instrumental variables to handle endogeneity in "short T, large N" panels. 5. Diagnostics and Robustness Panel data often suffers from Heteroskedasticity Autocorrelation Robust Standard Errors: Always use the vce(cluster idcode) For real-world applications, basic FE/RE may not suffice
xtserial wage experience union
: Run xtreg, fe vce(cluster id) as default. Always. Even if you think errors are i.i.d.—they aren’t. For real-world applications
Stata’s panel data capabilities continue to expand. To go deeper: