I have three waves of panel data 2008, 2012, 2016 and I would like to create a variable indicating transitions in employment. For example, if a person was employed in 2008, but unemployed in 2012, how would I code for this? Or if in 2012 a person went from employed to retired. Overall, I need to create a series of variables indicating change in employment status across these three years (e.g., employed 2008 to part-time 2012; employed 2008 unemployed 2016; etc.). I appreciate any help you all can provide.
As Kurt says, it depends on the format of your data, but in general the idea is to create a so-called "transition matrix." A transition matrix shows the former state (unemployed, employed, retired,....) versus the new state. Here is an example. For each employee, use the "Initial" variable to describe the state at the beginning of the year. Use the "Final" variable to describe their state at the end of the year. In this company, many employees were promoted, some were not, and no one left the company or was demoted:
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