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Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

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Page 1: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Department of Economics

Trinity College Dublin, Ireland

Day 2: Labour Market Participation and Income Earning Activities

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Page 2: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Road map

• New commands

• Exercise 1• HH members working and earning income

• Exercise 2• Activities by gender and consumption quintiles

• Exercise 3• Diversification of income activities • Income shares from income earning activities

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Page 3: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Today’s commands

egen name=stat(var1) : adds some summary statistic of var1 to the data as a variable. This command can be used with the ‘by’ command to generate this statistic for different categories.

For example, ‘egen var1=sum(var2), by(var3)’ generates a variable called

var1 which is the sum of var2 for different categories given by var3.

See help egen for more details

collapse (stat) list : collapses the data into statistics of the variables given in list.  This command can be use with the ‘by’ command to collapse the dataset into statistics for different categories.

For example, ‘collapse (mean) var1 var2, by(var3)’ will collapse the dataset into the mean of var1 and var2 for each of the categories given by var3

See help collapse for more details

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Page 4: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Getting Started

1.Open the do-file “day2.do” stored in “C:\Data”

2.Write your name and the date in the title box

3.Clear all data from Stata’s memory

4.Set Stata up so that 200 megabytes of RAM is allocated to store the data

5.Set the path to “C:\Data”

6.Open a new log file called “day2.log”

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Page 5: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 1

1. Open the data file “day2_1.dta”

2. ‘count’ the number of observations in the data set

3. Use the ‘describe’ command to review the data in memory

4. Sort by individual

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Page 6: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

1. Working for wage/salary outside the household

2. Participating in Household production related to agriculture/forestry/aquaculture

3. Non-farm, non-wage activities, not housework (trading, services, transportations, other business)

4. Using common property resources to generate income for the household (fishing, hunting, gathering honey and berries)

5. Doing housework or chores

5 types of occupations

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Page 7: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 1

1. Run the command lines in the do-file that create and label the following variables

• hh_active : Total number of HH members of active age• hh_wage : Total number of HH members working for a

wage outside of household• hh_wage_prop: Proportion of active HH members working

for a wage outside the household• hh_hhprod: Total number of HH members working in

the farm household enterprise• hh_hhprod_prop: Proportion of active HH members working

in the farm household enterprise

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Page 8: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 1

2. Generate and label the following variables:

• hh_hhbus : Total number of HH members working in non-farm, non-wage activities, not housework

• hh_hhbus _prop: Proportion of active HH members working in non-farm, non-wage activities, not housework

• hh_hhprod: Total number of HH members working in the farm household enterprise

• hh_hhprod_prop: Proportion of active HH members working in the farm household enterprise

• hh_common: Total number of HH members engaged in common property use work

• hh_common_prop: Proportion of active HH members engaged in common property use work

• hh_house: Total number of HH members doing housework or chores

• hh_house_prop: Proportion of active HH members doing housework or chores

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Page 9: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 1

3. Run the command lines in the do-file that create and label the following variables

• income : Individual HH member earning income• hh_income: Total number of HH members earning income• hh_income_prop: Proportion of active HH members earning income

• work: Individual HH member earning income• hh_work: Total number of HH members working• hh_work_prop: Proportion of active HH members working

4. Collapse hhsize hh_work hh_income wt9 by household

5. Replicate Figure 2.1 from the 2006 report using the 2008 data (Hints: don’t forget to use weights)

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Page 10: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 2

1. Open the data file “day2_2.dta”2. Use the ‘describe’ command to review the data in memory3. Sort by individual4. Run the command lines in the do-file that create and label the following

variables• work_male: Dummy variable “male working”• hh_workmal: Total number of male HH members working• hh_workmal_prop: Proportion of male active HH members working • income_male: Dummy variable “male earning income”• hh_incomemal: Total number of male HH members earning

income• hh_incomemal_prop: Proportion of male active HH members earning

income• wage_male: Male working for wage outside the household• hh_wagemal: Total number of male HH members working for a

wage outside of household• hh_wagemal_prop: Proportion of male active HH members working

for a wage outside of household10

Page 11: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 2

5. Run the command lines in the do-file that create and label the following variables• hhprod_male: Male working in the farm household enterprise• hh_hhprodmal: Total number of male HH members working in

the farm household enterprise• hh_hhprodmal_prop: Proportion of male active HH members

working in the farm household enterprise

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Page 12: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 2

6. Generate and label the following variables:

• work_fem: Dummy variable “female working“• hh_workfem: Total number of female HH members working• hh_workfem_prop: Proportion of female active HH members

working for a wage outside of household"• income_fem: Dummy variable “female earning income”• hh_incomefem: Total number of female HH members earning

income• hh_incomefem:_prop: Proportion of female earning income• wage_fem: Female working for wage outside the household• hh_wagefem: Total number of female HH members working

for a wage outside of household• hh_wagefem_prop: Proportion of female active HH members

working for a wage outside of household• hhprod_fem: Male working in the farm household enterprise• hh_hhprodfem: Total number of female HH members working in

the farm household enterprise• hh_hhprodfem_prop: Proportion of female active HH members working

in the farm household enterprise

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Page 13: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 2

7. Collapse hh_workfem_prop hh,_workmal_prop, hh_incomefem_prop, hh_incomemal_prop, hh_wagefem_prop, hh_wagemal_prop, hh_hhprodfem_prop, hh_hhprodmal_prop, hh_work_prop, hh_income_prop, fdpcquint, and wt9 by household

8. Replicate Column 1-4 Table 2.1 from the 2006 report using the 2008 data (Hint: don’t forget to use weights)

9. Replicate Graph a), b) of Figure 2.2 from the 2006 Report using the 2008 data (Hint: don’t forget to use weights)

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Page 14: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 3

1. Open the data file “day2_3.dta”2. Use the ‘describe’ command to review the data in memory3. Count observations4. Sort by household level 1. Run the command lines in the do-file that create and label

the following variable• hhdivers: number of activity types HH is involved in

5. Replicate Table 2.3 from the 2006 report using the 2008 data (Hint: don’t forget to use weights)

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Page 15: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 3

6. A number of variables have to be created for Table 2.5. • totinc: HH Total Income• wageinc: HH Wage Income• agroinc: HH Income from agricultural activities• hhbusinc: HH Income from nonfarm/non-wage activities• compropinc: HH Income from common property resources• other: HH Other Income• iwagesh: HH wage income as a share of total income• iagrosh: HH income from agricultural activities as a share of total

income• ihhbussh: HH income from nonfarm/non-wage activities as a share

of total income• icompropsh: HH income from common property resources as a share of total

income• iothersh: HH other income as a share of total income

A number of prompts and hints are given in the do-file

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Page 16: Department of Economics Trinity College Dublin, Ireland Day 2: Labour Market Participation and Income Earning Activities 1

Exercise 3

7. Replicate Table 2.5 from the 2006 report using the 2008 data – Labor Income Share only (Hint: don’t forget to use weights)

8. Replicate Figure 2.5 from the 2006 report using the 2008 data (Hint: don’t forget to use weights)

9. Close the log file

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