How can generate for creationg of dummies/indicators from factor/categorical variable be automated?
Solution comes from Nick: tabulate group, generate(g)
* Load data
clear
use http://www.stata-press.com/data/r13/nlswork
* Set panel structure
xtset idcode year
* Delete other variables
keep idcode year ln_wage union tenure age race occ_code
* Complete Cases
drop if union ==.
drop if tenure ==.
drop if occ_code ==.
* Generate dummies automatically
tabulate race, generate(r)
tabulate occ_code, generate(occ)
generate tr1 = tenure*r1
generate tr2 = tenure*r2
generate tr3 = tenure*r3
* Interaction with factor notation
reg ln_wage c.tenure##i.race i.occ_code age union
*margins, dydx(tenure) post
estimates store reg_factor
* Interaction without factor notation
reg ln_wage tenure r1 r2 r3 tr1 tr2 tr3 age union ///
occ1 occ2 occ3 occ4 occ5 occ6 occ7 occ8 occ9 occ10 occ11 occ12 occ13
*margins, dydx(tenure) post
estimates store reg_dummies
estimates table reg_factor reg_dummies