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The Oaxaca decomposition generalized to a continuous group variable

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  • Ulrick, Shawn W.
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    Abstract

    Almost universally, the Oaxaca (1973) decomposition is used to compare the outcomes between two discrete groups, e.g., black and white. In many applications, however, groups are not readily divided into discrete bins. The purpose of this paper is to extend the Oaxaca decomposition to examine differences amongst groups that are most naturally modeled as at points in a continuum. The gap can vary by values of the group variable.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176511005027
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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 115 (2012)
    Issue (Month): 1 ()
    Pages: 35-37

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    Handle: RePEc:eee:ecolet:v:115:y:2012:i:1:p:35-37

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Oaxaca decomposition; Wage gap; Education attainment;

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    1. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
    2. Mats Bergman & Malcolm Coate & Maria Jakobsson & Shawn Ulrick, 2010. "Comparing Merger Policies in the European Union and the United States," Review of Industrial Organization, Springer, vol. 36(4), pages 305-331, June.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. Hugo R. Ñopo, 2007. "An Extension of the Blinder-Oaxaca Decomposition to a Continuum of Comparison Groups," IDB Publications 6850, Inter-American Development Bank.
    5. Donohue, John J, III & Levitt, Steven D, 2001. "The Impact of Race on Policing and Arrests," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 367-94, October.
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