IDEAS home Printed from https://ideas.repec.org/a/taf/rseexx/v38y2014i3p39-54.html
   My bibliography  Save this article

Extending the Oaxaca-Blinder Decomposition to the Independent Double Hurdle Model: With Application to Parental Spending on Education in Malawi

Author

Listed:
  • R. Mussa

Abstract

The study develops the Blinder-Oaxaca decomposition technique for the independent double hurdle model. The proposed decomposition is done at the aggregate level. Using the Second Malawi Integrated Household Survey (IHS2), the paper applies the proposed decomposition to explain the rural-urban difference in parental spending on own primary school children. The results show that at least 66% of the expenditure differential is explained by differences in characteristics between rural and urban households.

Suggested Citation

  • R. Mussa, 2014. "Extending the Oaxaca-Blinder Decomposition to the Independent Double Hurdle Model: With Application to Parental Spending on Education in Malawi," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 38(3), pages 39-54, December.
    • Handle: RePEc:taf:rseexx:v:38:y:2014:i:3:p:39-54
    DOI: 10.1080/10800379.2014.12097271
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10800379.2014.12097271
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10800379.2014.12097271?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Helen H. Jensen & Steven T. Yen, 1996. "Food Expenditures Away From Home by Type of Meal," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(1), pages 67-80, March.
    2. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    3. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    4. 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.
    5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    6. Su, Shew-Jiuan B & Yen, Steven T, 1996. "Microeconometric Models of Infrequently Purchased Goods: An Application to Household Pork Consumption," Empirical Economics, Springer, vol. 21(4), pages 513-533.
    7. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    8. Deaton, Angus S, 1989. "Looking for Boy-Girl Discrimination in Household Expenditure Data," The World Bank Economic Review, World Bank, vol. 3(1), pages 1-15, January.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    10. Thomas Bauer & Mathias Sinning, 2010. "Blinder-Oaxaca decomposition for Tobit models," Applied Economics, Taylor & Francis Journals, vol. 42(12), pages 1569-1575.
    11. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    12. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    13. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    14. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    15. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
    16. Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 92(2), pages 197-206, May.
    17. Kingdon, Geeta Gandhi, 2005. "Where Has All the Bias Gone? Detecting Gender Bias in the Intrahousehold Allocation of Educational Expenditure," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 409-451, January.
    18. Murray Smith, 2003. "On dependency in double-hurdle models," Statistical Papers, Springer, vol. 44(4), pages 581-595, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    2. González Álvarez, M Luz & Barranquero, Antonio Clavero, 2009. "Inequalities in health care utilization in Spain due to double insurance coverage: An Oaxaca-Ransom decomposition," Social Science & Medicine, Elsevier, vol. 69(5), pages 793-801, September.
    3. Karolina Goraus & Joanna Tyrowicz, 2014. "Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    4. Andrew E. Burke & Michael A. Nolan & Felix R. FitzRoy, 2006. "Education and Regional Job Creation by the Self-Employed: The English North-South Divide," Papers on Entrepreneurship, Growth and Public Policy 2006-07, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    5. Andrew Burke & Felix Fitzroy & Michael Nolan, 2009. "Is there a North-South Divide in Self-employment in England?," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 529-544.
    6. Karolina Goraus Tanska & Joanna Tyrowicz & Lucas Augusto van der Velde, 2020. "How rankings disguise gender inequality: A comparative analysis of cross-country gender equality rankings based on adjusted wage gaps," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-21, November.
    7. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo, vol. 61(1), pages 202-238.
    8. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    9. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    10. Yun Liang & John Gibson, 2017. "Location or Hukou: What Most Limits Fertility of Urban Women in China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 527-540, September.
    11. Eric Solberg, 2004. "Occupational assignment, hiring discrimination, and the gender pay gap," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(1), pages 11-27, March.
    12. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    13. Zhang, Li & Sharpe, Rhonda Vonshay & Li, Shi & Darity, William A., 2016. "Wage differentials between urban and rural-urban migrant workers in China," China Economic Review, Elsevier, vol. 41(C), pages 222-233.
    14. Fairlie, Robert W., 2003. "An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models," Center Discussion Papers 28425, Yale University, Economic Growth Center.
    15. 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.
    16. S. Madheswaran & Smrutirekha Singhari, 2016. "Social exclusion and caste discrimination in public and private sectors in India: A decomposition analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(2), pages 175-201, June.
    17. Frank M. Fossen, 2012. "Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1795-1812, May.
    18. Ravi Srivastava, 2019. "Emerging Dynamics of Labour Market Inequality in India: Migration, Informality, Segmentation and Social Discrimination," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 147-171, June.
    19. Kalb, Guyonne & Le, Trinh & Hunter, Boyd & Leung, Felix, 2012. "Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians," IZA Discussion Papers 6808, Institute of Labor Economics (IZA).
    20. Wolff, François-Charles, 2012. "Decomposition of non-linear models using simulated residuals," Economics Letters, Elsevier, vol. 116(3), pages 346-348.

    More about this item

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rseexx:v:38:y:2014:i:3:p:39-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsee .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.