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Decomposition of Differences

Author

Listed:
  • Howard M. Iams

    (Hope College)

  • Arland Thornton

    (University of Michigan)

Abstract

This paper examines methods of decomposing a difference in levels between groups for a dependent variable such as income. Applied to regression equations, this technique estimates the contribution to the difference from divergent characteristics and divergent rates of converting characteristics into the dependent variable. The consequences of an "interaction" component being present in the decomposition is examined. The paper, using data from the 1960 Census, shows how ignoring the interaction term can influence results.

Suggested Citation

  • Howard M. Iams & Arland Thornton, 1975. "Decomposition of Differences," Sociological Methods & Research, , vol. 3(3), pages 341-352, February.
    • Handle: RePEc:sae:somere:v:3:y:1975:i:3:p:341-352
    DOI: 10.1177/004912417500300306
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    References listed on IDEAS

    as
    1. Malcolm S. Cohen, 1971. "Sex Differences in Compensation," Journal of Human Resources, University of Wisconsin Press, vol. 6(4), pages 434-447.
    2. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, March.
    3. Malkiel, Burton G & Malkiel, Judith A, 1973. "Male-Female Pay Differentials in Professional Employment," American Economic Review, American Economic Association, vol. 63(4), pages 693-705, September.
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    Cited by:

    1. S. C. Noah Uhrig & Nicole Watson, 2020. "The Impact of Measurement Error on Wage Decompositions: Evidence From the British Household Panel Survey and the Household, Income and Labour Dynamics in Australia Survey," Sociological Methods & Research, , vol. 49(1), pages 43-78, February.

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