I want to find out if there is effect of marital transition (from married to widowed) on self assessed health with 3 wave panel data (unbalanced panel). My question is: What is the correct way to find this out?
Would it be reshaping panel from long to wide format and regressing change in marital status on health with controlling for health in T1? This is the way I have encountered in research articles in this area.
So my model would be something like: healthT3 = transitionT2 + transitionT3 + sex + age + healthT1/T2 + error term
Or should I use fixed effects panel regression? AFAIK fixed effects only counts for changes in variables (120 changes from T1 to T3 married to widowed). So, can FE estimates be interpreted in the sense of change in marital status?
Or is there any other way how to find this out?