Three Ways to Create Dummy Variables in Stata | Data Management | Stata Tutorials Topic 32

Stata Tutorials Topic 32: Three Ways to Create Dummy Variables in Stata | Summary Statistics and Data Management Using Stata

Hi, I am Bob. Welcome to the Stata course on data management. Let's talk about how to create dummy variables in Stata. A dummy variable is also called a binary variable or an indicator variable. It takes on only two values, zero and one. These two values are used to put each observation into one of two groups represented by zero and one. For example, we can use a dummy variable to describe whether a worker is full-time or part-time. We use a dummy variable, "full-time," to indicate full-time workers. Fulltime==1 means full-time workers; fulltime==0 represents part-time workers.

There are three main methods to create dummy variables in Stata. We can use the generate and replace commands to create a dummy variable based on an existing continuous variable. We can also use the recode command with the generate option. The third method is to create several dummy variables from a categorical variable using the tabulate command with the generate option.

Please download the BOB.dta dataset:
https://drive.google.com/file/d/1dUBB...

The Stata commands in this video:
*create a dummy variable using generate and replace commands
codebook schooling

generate college=0 if schooling . \\there is a "less than" sign between "schooling" and "."

replace college=1 if schooling 12 & schooling . \\there is a "greater than" sign between "schooling" and "12"; there is a "less than" sign between "schooling" and "."

tabulate college

summarize schooling

*create a dummy variable using recode command with generate option
recode schooling (6/12=0) (13/17=1), generate(college2)

tabulate college2

*create dummy variables from a categorical variable
tabulate race

tabulate race, nolabel

tabulate race, generate(racedummy)

tabulate racedummy1

tabulate racedummy2

tabulate racedummy3

tabulate racedummy4

display racedummy1+racedummy2+racedummy3+racedummy4

regress lwage racedummy*

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