*** use wages from the sample with no school

clear
set mem 2g
set matsize 800

cd H:\Giovanni\MyPapers\Peri_Ottaviano_aggregate\REDUX_2008\empirics\regressions_IPUMS

use supply_groups_60_06_specification_1.dta
sort year edu exp
save employment, replace
clear
use supply_wage_60_06_specification_noschool
sort year edu exp
merge year edu exp using employment


* generate dummies 
gen eduyear=year+edu
gen eduexp=(edu*10)+exp
gen expyear=year*10+exp

tab exp, gen(ex)
tab edu, gen (edu)
tab year, gen (y)
tab eduyear, gen (edy)
tab eduexp, gen(edex)
tab expyear, gen(exy)

* generate variables ***

gen lnrel_hours=ln((howo_ma_for+howo_fe_for)/(howo_ma_us+howo_fe_us))
gen lnrel_hours_male=ln(howo_ma_for/howo_ma_us)
gen lnrel_hours_female=ln(howo_fe_for/howo_fe_us)

gen lnrel_empl=ln((empl_ma_for+empl_fe_for)/(empl_ma_us+empl_fe_us))
gen lnrel_empl_male=ln(empl_ma_for/empl_ma_us)
gen lnrel_empl_female=ln(empl_fe_for/empl_fe_us)

gen weekly_for=(weekly_ma_for*howo_ma_for+weekly_fe_for*howo_fe_for)/(howo_ma_for+howo_fe_for)
gen weekly_us=(weekly_ma_us*howo_ma_us+weekly_fe_us*howo_fe_us)/(howo_ma_us+howo_fe_us)

gen lnrel_weekly= ln(weekly_for/weekly_us)
gen lnrel_weekly_male= ln(weekly_ma_for/weekly_ma_us)
gen lnrel_weekly_female= ln(weekly_fe_for/weekly_fe_us)


**** run the regressions whose results are reported in Table 3 **********
*** Table 3
*row one, Male

xi:reg lnrel_weekly_male lnrel_hours_male [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.exp*i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment], robust cluster(eduexp)

*** Table 2 
** row 2, female

xi:reg lnrel_weekly_female lnrel_hours_female [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.exp*i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment], robust cluster(eduexp)


*** Table 2
*row three, Male and female

xi:reg lnrel_weekly lnrel_hours [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year [aw=employment], robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment], robust cluster(eduexp)


*** Table 2
*row four, Male and female, IV with relative employment

xi:ivreg lnrel_weekly  (lnrel_hours=lnrel_empl) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly  i.edu*i.exp (lnrel_hours=lnrel_empl) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly i.edu*i.exp i.year (lnrel_hours=lnrel_empl) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly i.edu*i.exp i.exp*i.year (lnrel_hours=lnrel_empl) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly i.edu*i.exp i.exp*i.year i.edu*i.year (lnrel_hours=lnrel_empl) [aw=employment], robust cluster(eduexp)

*** Table 2
*row five, Male and female 1970-2006

xi:reg lnrel_weekly lnrel_hours [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.year [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment] if year>1960, robust cluster(eduexp)


*** Table 2
*row six, Male and female less educated
xi:reg lnrel_weekly lnrel_hours [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.year [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment] if edu<3, robust cluster(eduexp)


*** Table 2
*row seven, Male and female, young
xi:reg lnrel_weekly lnrel_hours [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.year [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly lnrel_hours i.edu*i.exp i.exp*i.year i.edu*i.year [aw=employment] if exp<5, robust cluster(eduexp)