* STATA 7.0 * 27 March 2005 /* THIS PROGRAM CONSTRUCTS THE DATA FOR THE PAPER: EDUCATION, GROWTH AND INCOME INEQUALITY */ clear capture log close log using coen_thijs_data, replace text set mem 5m set more off set rmsg on use edu25 keep country year edu25 vedu25 quiet do crecode sort country year save data, replace use lrgdps, clear keep if year==1960 | year==1965 | year==1970 | year==1975 | year==1980 | year==1985 | year==1990 | year==1995 | year==2000 quiet do crecode sort country year merge country year using data tab _merge *keep if _merge==3 keep country year lrgdpw edu25 vedu25 pwt56 bysort country year: keep if _n==1 sort country year label data "Data for 'Education, Growth and Income Inequality'" save data, replace use data, clear merge country year using klenow_rclare tab _merge drop if _merge==2 drop _merge gen lkw=log(rgdpwok*ky) drop att rgdpwok label var ky "Klenow and Rodriguez-Clare (2004) estimated ratio of physical capital to output" label var lkw"Log Physical Capital per Worker" sort country year *** MERGE VINC DATA *** merge country year using vinc tab _merge *drop if _merge==2 drop _merge sort country year save coen_thijs_data, replace *** PRODUCE 10 YEAR DATA *** use coen_thijs_data, clear keep if year==1960 | year==1970 | year==1980 | year==1990 | year==2000 egen ctyid=group(country) label var ctyid "Country code specific to this data set" order ctyid country year egen decade=group(year) label var decade "Decade" order country year ctyid decade sort ctyid decade tsset ctyid decade gen yr70=0 replace yr70=1 if year==1970 label var yr70 "Dummy Year 1970" gen yr80=0 replace yr80=1 if year==1980 label var yr80 "Dummy Year 1980" gen yr90=0 replace yr90=1 if year==1990 label var yr90 "Dummy Year 1990" gen edu70=0 replace edu70=edu25 if year==1970 label var edu70 "Edu25 Year 1970" gen edu80=0 replace edu80=edu25 if year==1980 label var edu80 "Edu25 Year 1980" gen edu90=0 replace edu90=edu25 if year==1990 label var edu90 "Edu25 Year 1990" gen Ledu70=0 replace Ledu70=edu25[_n-1] if year==1970 label var Ledu70 "LagEdu25 Year 1970" gen Ledu80=0 replace Ledu80=edu25[_n-1] if year==1980 label var Ledu80 "LagEdu25 Year 1980" gen Ledu90=0 replace Ledu90=edu25[_n-1] if year==1990 label var Ledu90 "LagEdu25 Year 1990" gen dlrgdpw=d.lrgdpw/10 label var dlrgdpw "10 year changes in log real GDP per worker (annualized)" gen dvinc=d.vinc/10 label var dvinc "10 year changes in variance log income (annualized)" gen dedu25=d.edu25/10 label var dedu25 "10 year changes in average years of education (annualized)" gen dvedu25=d.vedu25/10 label var dvedu25 "10 year changes in variance education (annualized)" order country year ctyid decade lrgdpw dlrgdpw vinc dvinc edu25 dedu25 vedu25 dvedu25 sum lrgdpw dlrgdpw vinc dvinc edu25 dedu25 vedu25 dvedu25 sort ctyid decade save coen_thijs_data_10, replace log close