© Brian McCaig 2020 [54 marks] 1. [7 marks] Calculate total employment in foreign invested firms in a province: Begin by loading the dataset “dn2009.dta” into Stata. a) Restrict the dataset to firms that are (i) 100% foreign, (ii) a joint venture between state and foreign, or (iii) a joint venture between others and foreign. The variable ownership stores the ownership type. You should end up with 6,547 observations. [1 mark] b) Calculate total employment in foreign invested firms by province. You will likely find it helpful to learn how to use the collapse command if you have not used it before and the following video tutorial could be helpful: . [2 marks] c) Save your dataset for later combining with the population census data. [1 mark] d) Summarize the distribution of employment in foreign invested firms across provinces. There are numerous ways you could do so. I want you to think about and explore different methods. [3 marks] 2. [6 marks] Combine the provincial FDI employment values with the population census data Open the population census data in Stata. Please sure to use the version that corresponds to the second last digit of your student number. a) Merge the census data with the provincial FDI employment values. If you are not familiar with the merge command, you will likely find this video tutorial useful: . You may also find it useful to refer to the Stata manual on how to choose the “Type of merge”. [2 marks] b) What do you notice about the output that Stata provides after merging? Look at the help file to learn what the codes mean. Is this result what you expected? [2 marks] c) For provinces in the census data that did not have an observation in the FDI employment data from the firm dataset, replace the FDI employment value with a 0. [2 marks] 3. Working [22 marks] a) Create an indicator variable that takes the value 1 if the individual is working and 0 otherwise. Call this variable working . See the variable empstat for various values describing the individual’s economic activity. [2 marks]
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