The Blinder–Oaxaca Decomposition for Linear Regression Models
Top Cited Papers
- 1 December 2008
- journal article
- research article
- Published by SAGE Publications in The Stata Journal: Promoting communications on statistics and Stata
- Vol. 8 (4), 453-479
- https://doi.org/10.1177/1536867x0800800401
Abstract
The counterfactual decomposition technique popularized by Blinder (1973, Journal of Human Resources, 436–455) and Oaxaca (1973, International Economic Review, 693–709) is widely used to study mean outcome differences between groups. For example, the technique is often used to analyze wage gaps by sex or race. This article summarizes the technique and addresses several complications, such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new command called oaxaca is introduced, and examples illustrating its usage are given.Keywords
This publication has 31 references indexed in Scilit:
- An extension of the Blinder-Oaxaca decomposition technique to logit and probit modelsJournal of Economic and Social Measurement, 2005
- More on Identification in Detailed Wage DecompositionsThe Review of Economics and Statistics, 2004
- Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification ProblemILR Review, 2001
- Interindustry and Interregion Differentials: Mechanics and InterpretationThe Review of Economics and Statistics, 1997
- Regression with Dummy VariablesPublished by SAGE Publications ,1993
- On the Decomposition of Wage DifferentialsThe Review of Economics and Statistics, 1988
- SAMPLE SELECTION AND MALE-FEMALE EARNINGS DIFFERENTIALS IN THE GRADUATE LABOUR MARKETOxford Economic Papers, 1986
- Job Preferences, College Major, and the Gender Gap in EarningsThe Journal of Human Resources, 1984
- Sample Selection Bias as a Specification ErrorEconometrica, 1979
- Wage Discrimination: Reduced Form and Structural EstimatesThe Journal of Human Resources, 1973