The Blinder–Oaxaca decomposition for linear regression models

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.


Issue Date:
2008
Publication Type:
Journal Article
DOI and Other Identifiers:
st0151 (Other)
PURL Identifier:
http://purl.umn.edu/122615
Published in:
Stata Journal, Volume 08, Number 4
Page range:
453-479
Total Pages:
27

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 Record created 2017-04-01, last modified 2017-08-26

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