I am trying to see the real household income (by aggregating INCWAGE) from 1960 to 2010.
But the mean household income in 1970 is extremely high (69612.63), compared to 1980 (44789.66), 1990 (48879.25), 2000 (54244.7), and 2010 (51436.05).
Here are what I did in Stata:
- drop if gq>2;
- replace the INCWAGE with value 999998/9 to empty cell;
- generate household income by summing up INCWAGE by SERIAL;
- get real household income using CPI99;
- keeping only one observation per household and drop the households with zero income;
- get weighted average of the real household income.
drop if gq>2 replace incwage=. if incwage>=999998 bysort serial: egen household_income=sum(incwage) gen real_hhinc=household_income*cpi99 drop if real_hhinc<=0 keep if pernum==1 sum real_hhinc [aw=hhwt]
I am relatively new to the data set so I am not sure if I did something wrong or missed something.