It’s possible to create indicator variables from categorical variables as well, by using the tabulate command. Let’s have a look:
sysuse nlsw88, clear
tabulate race, gen(rc)Here we appended the option gen(rc) which generated three indicator variables for us out of the categories in the race variable. Let’s rename and relabel these:
rename rc1 white
label variable white "white"
rename rc2 black
label variable black "black"
rename rc3 other
label variable other "other"
