How to choose best model specification for time serie data ?Watch
Independent variables are Gini index, p80/p20, %of 20-24 years old in tiertiary education.Can I use fixed effect model to compare social inequalities between countries with free (or almost free public universities fees ) with countries with high fees?
Inequality = a + b(Free Educ dummy) + c(% of people in Tertiary education) + e
Is this what you were thinking of?
The only reason you would want to use FE is if you think there is an omitted variable (contained in e) which is correlated with both inequality and free education. This is probably a reasonable assumption.
However, if you want to estimate b then I think you will be need some countries which have moved from private to free education (or vice versa) in order to get enough variation for estimation.