I am using R to estimate the hourly wages of employees. My dataset is called Total1. In the dataset there is a variable called "company sized" consisting of the following categories:
Company size 1 2 3 4 5 6 7
Where:
- 1 = up to 4 employees 2 = from 5 to 19 employees 3 = from 20 to 49 employees 4 = from 50 to 99 employees 5 = from 100 to 499 employees 6 = over 500 employees 7 = not applicable, public employees
I would like to transform "company size" variable into a continuousnvariable, thus using the median values of the size classes, that is:
Company size 2 10 25 50 250 1000 ?
But what value could I use for "not applicable, public employees", so that it does not create inconsistencies in the estimate of the hourly wage?