Losing observations through fixed effects
Posted: Wed Sep 18, 2013 5:06 am
Dear all,
At this time I'm working on by thesis, but stumbled on a simple question. However, I found no answer on the internet.
Question: I have a panel data set from a company and I'm doubting whether to use period fixed effects, besides employee fixed effects. I have 1248 original observations, with 580 employees (cross-sections). Will using the period fixed effects, lead to loss of extra observations? If an employee is one period within the company, I already lose one observation when using employee fixed effects. Will I lose an extra one, after using period fixed effects?
Kind regards,
Jan-Willem van Putten
At this time I'm working on by thesis, but stumbled on a simple question. However, I found no answer on the internet.
Question: I have a panel data set from a company and I'm doubting whether to use period fixed effects, besides employee fixed effects. I have 1248 original observations, with 580 employees (cross-sections). Will using the period fixed effects, lead to loss of extra observations? If an employee is one period within the company, I already lose one observation when using employee fixed effects. Will I lose an extra one, after using period fixed effects?
Kind regards,
Jan-Willem van Putten