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NLSY - Permanent Income Risk Estimation

This repository contains STATA codes that I wrote for an RA Assignment under Prof. Trevor Gallen (Fall 2019). In this project, I used data from the NLSY (National Longitudinal Survey Data) to estimate the contribution of motherhood to the size of permanent income risk.

Data and Stata Files

Code

  • dataclean.do: Loads the raw dataset, reads in the dictionary file, keeps variables of interest, renames variables, constructs variables, cleans data and save working data.

    • Output: nlsy_2019/nlsy_working.dta
    • We can get the working data by running the dataclean.do file
  • incvariance.do: Estimates contribution of motherhood to the size of permanent income shocks

    • Data used: nlsy_2019/nlsy_working.dta
    • Output: nlsy_2019/residual.dta
    • Deflate nominal income variables using personal consumption expenditure, estimate residual income by performing regression, estimate variance of the permanent income shocks
  • master.do: runs all .do files using one click

Author

Debasmita Das (Purdue University, 2019)