CPS monthly survey linkage to create panel data

Hello IPUMS community,

I have been working with the CPS ASEC but lately trying to get my hands on the monthly sample. After going through a handful of posts on IPUMS forum, I was pretty confused before I come across this post - which was very clear about how I should approach the monthly data.

In spite of clear guidelines, I’m still trying to get hold of the concept of merging since I am not sure what will give me the best outcome to create the panel. I’m not sure should I create the 8 month panel ( given in the first exercise of stata workshop in 2018 ) or should I just create one year panel by linking CPSIDP. And also there is a concern of validation by age , race and sex.

My main purpose is to see how a person changes job and how it affects the wage in few selective states.

My sample is from 1995-2005. But, I haven’t been able to code it properly to come up with the matching. I think it would be best to see what’s the maximum time CPSIDP shows up within 16 months of his first interview - which goes perfectly with my research interest.

In the stata exercise 2 of workshop 2018 , it also shows me the code to track what’s the maximum time a unique CPSIDP shows up ( even after 1 year or 2 year later given the interview takes place two years before in December month ).

Since, I’m. a beginner with the monthly sample , therefore wanted ti make sure I’m starting off to the right direction with my concept.

Any helpful suggestion or additional help with coding will most definitely help !

To be more precise about my research interest , I think it would be more suitable if I can keep track of a unique CPSIDP till it finishes the 16 month cycle of the 4-8-4 formation. So, after going through and reading a few more relevant posts and very helpful feedback of IPUMS community I came with the following command to create the 16 month panel ( which I adapted a little from the command given in this post : FAILURE: Linking to the Same Calendar Month across Two Consecutive Years from JULY 1994 to AUGUST 1995

gen time = ym(year, month)

forvalues t=372(1)680{

keep if (time== t' & mish==8)|(time== t’-16 & mish==4)

order cpsidp year month

sort cpsidp year month

by cpsidp: gen obs=_N

by cpsidp: drop if obs!=2

In the above command , I just changed the third line from the one provided in the post by putting time== t’-16 instead of time== t’-12 , since I’m trying to link observation throughout 16 months instead of making it a one year panel data.

And, the command provided in the post is for finding EARNWEEK , whereas in my case the outcome is INCWAGE and UHRSWEEK1. Are using the mish==8 and mish==4 correct choice of values given that I’m creating a 16 month panel data whereas the post maker was creating one year panel data ?

I hope I’m making sense. And, if my post goes a little off track because of not holding a good grip over the basic concept - any helpful suggestion or advice is very much welcome from respected IPUMS community !

My gut feeling is that , since I’d like to track that unique id from beginning , so my desired variables should be : mish==8 and mish==1.