I have the issue of interpreting the STATA command Twostep Heckman model, and also adding fixed effects to the model.
My analysis is based on a panel dataset and I want to solve for the selection bias for the individuals who died before the period of school attendance and need to understand the interpretation of the below result, my dependent variable is education (continuous variable) and the independent variable is household size. I have only included 2 variables for this example. I would like to add fixed effects and replicate the same using R.
I would like to know how this can be run in R studio probit regression, then extract the predicted value, calculate the mills ratio and run the model using fixed effects (cluster and month fixed effects).
hope the image is clear
thank you
