clear
set mem 2g
set matsize 800

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


*** loading the basic wage and employment samples **

use supply_groups_60_06_specification_1.dta
sort year edu exp
save employment, replace
clear
use supply_wage_60_06_specification_1
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 reported in Table 4A

*** Table 4A
*row one, Male, IV with relative employment
xi:ivreg lnrel_weekly_male (lnrel_hours_male =lnrel_empl_male ) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_male  i.edu*i.exp (lnrel_hours_male=lnrel_empl_male) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_male i.edu*i.exp i.year (lnrel_hours_male=lnrel_empl_male) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_male i.edu*i.exp i.exp*i.year (lnrel_hours_male=lnrel_empl_male) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_male i.edu*i.exp i.exp*i.year i.edu*i.year (lnrel_hours_male=lnrel_empl_male) [aw=employment], robust cluster(eduexp)

*row Two, female, IV with relative employment
xi:ivreg lnrel_weekly_female (lnrel_hours_female =lnrel_empl_female ) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_female  i.edu*i.exp (lnrel_hours_female=lnrel_empl_female) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_female i.edu*i.exp i.year (lnrel_hours_female=lnrel_empl_female) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_female i.edu*i.exp i.exp*i.year (lnrel_hours_female=lnrel_empl_female) [aw=employment], robust cluster(eduexp)
xi:ivreg lnrel_weekly_female i.edu*i.exp i.exp*i.year i.edu*i.year (lnrel_hours_female=lnrel_empl_female) [aw=employment], robust cluster(eduexp)

*** Table 4A
*row three, Male 1970-2006
xi:reg lnrel_weekly_male lnrel_hours_male [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_male  lnrel_hours_male  i.edu*i.exp [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_male  lnrel_hours_male  i.edu*i.exp i.year [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_male  lnrel_hours_male  i.edu*i.exp i.exp*i.year [aw=employment] if year>1960, 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] if year>1960, robust cluster(eduexp)

*row four, Female 1970-2006
xi:reg lnrel_weekly_female lnrel_hours_female [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_female  lnrel_hours_female  i.edu*i.exp [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_female  lnrel_hours_female  i.edu*i.exp i.year [aw=employment] if year>1960, robust cluster(eduexp)
xi:reg lnrel_weekly_female  lnrel_hours_female  i.edu*i.exp i.exp*i.year [aw=employment] if year>1960, 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] if year>1960, robust cluster(eduexp)

*** Table 4A
*row five, Male less educated
xi:reg lnrel_weekly_male lnrel_hours_male [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.year [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.exp*i.year [aw=employment] if edu<3, 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] if edu<3, robust cluster(eduexp)

*row six, female less educated
xi:reg lnrel_weekly_female lnrel_hours_female [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.year [aw=employment] if edu<3, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.exp*i.year [aw=employment] if edu<3, 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] if edu<3, robust cluster(eduexp)

*** Table 4A
*row seven, Male , young
xi:reg lnrel_weekly_male lnrel_hours_male [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.year [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_male lnrel_hours_male i.edu*i.exp i.exp*i.year [aw=employment] if exp<5, 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] if exp<5, robust cluster(eduexp)

** row eight, female, Young
xi:reg lnrel_weekly_female lnrel_hours_female [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.year [aw=employment] if exp<5, robust cluster(eduexp)
xi:reg lnrel_weekly_female lnrel_hours_female i.edu*i.exp i.exp*i.year [aw=employment] if exp<5, 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] if exp<5, robust cluster(eduexp)