Stata Panel Data [updated] 🏆 ⭐

The random‑effects model assumes that the unit‑specific heterogeneity is uncorrelated with the regressors and treats it as a random component:

: Simple, high efficiency if no unobserved heterogeneity. Cons : Biased if unobserved factors (e.g., ability) correlate with regressors.

For long panels (large T):

eststo: xtreg wage experience union i.year, fe eststo: xtreg wage experience union i.year, re esttab using panel_results.rtf, replace mtitles("FE" "RE") se

(Install: ssc install xtcd )

xtreg wage hours tenure, fe robust

Or with vce(cluster id) :

From long to wide:

xtivreg wage (tenure = age) hours, fe

xtregar y x1 x2, fe