Advanced Search
MyIDEAS: Login

Standard Errors for the Blinder-Oaxaca Decomposition

Contents:

Author Info

  • Ben Jann

    ()
    (Soziologie, ETH Zurich)

Registered author(s):

Abstract

The decomposition technique introduced by Blinder (1973) and Oaxaca (1973) is widely used to study outcome differences between groups. For example, the technique is commonly applied to the analysis of the gender wage gap. However, despite the procedure's frequent use, very little attention has been paid to the issue of estimating the sampling variances of the decomposition components. We therefore suggest an approach that introduces consistent variance estimators for several variants of the decomposition. The accuracy of the new estimators under ideal conditions is illustrated with the results of a Monte Carlo simulation. As a second check, the estimators are compared to bootstrap results obtained using real data. In contrast to previously proposed statistics, the new method takes into account the extra variation imposed by stochastic regressors.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://repec.org/dsug2005/oaxaca_se_handout.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Stata Users Group in its series German Stata Users' Group Meetings 2005 with number 03.

as in new window
Length:
Date of creation: 03 Apr 2005
Date of revision:
Handle: RePEc:boc:dsug05:03

Contact details of provider:
Web page: http://www.stata.com/meeting/3german
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Le, Huong Thu & Booth, Alison L., 2010. "Inequality in Vietnamese Urban-Rural Living Standards, 1993-2006," IZA Discussion Papers 4987, Institute for the Study of Labor (IZA).
  2. Tauchmann, Harald, 2008. "West-East Convergence in the Prevalence of Cannabis Use: Socioeconomics or Culture?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 2(29), pages 1-27.
  3. Andreas Ammermueller, 2007. "PISA: What makes the difference?," Empirical Economics, Springer, vol. 33(2), pages 263-287, September.
  4. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
  5. Ledyaeva , Svetlana & Linden, Mikael, 2006. "Foreign direct investment and economic growth: Empirical evidence from Russian regions," BOFIT Discussion Papers 17/2006, Bank of Finland, Institute for Economies in Transition.
  6. Eric S. Lin, 2007. "On the standard errors of Oaxaca-type decompositions for inter-industry gender wage differentials," Economics Bulletin, AccessEcon, vol. 10(6), pages 1-11.
  7. Maryam Dilmaghani, 2012. "Global financial crisis: dharmic transgressions and solutions," International Journal of Social Economics, Emerald Group Publishing, vol. 39(1), pages 55-80, January.
  8. Lin, Carl, 2013. "Decomposing abnormal returns in stochastic linear models," Economics Letters, Elsevier, vol. 118(1), pages 143-147.
  9. Nicole Fortin & Thomas Lemieux & Sergio Firpo, 2010. "Decomposition Methods in Economics," NBER Working Papers 16045, National Bureau of Economic Research, Inc.
  10. Tauchmann, Harald, 2008. "West-East Convergence in the Prevalence of Illicit Drugs: Socioeconomics or Culture?," Economics Discussion Papers 2008-8, Kiel Institute for the World Economy.
  11. repec:iab:iabzaf:v:41:i:2/3:p:157-179 is not listed on IDEAS
  12. Peter Huber & Doris A. Oberdabernig, 2014. "Decomposing Welfare Wedges. An Analysis of Welfare Dependence of Immigrants and Natives in Europe," WIFO Working Papers 459, WIFO.
  13. H Gravelle & A Risa Hole, 2008. "Measuring and testing for gender discrimination in professions: the case of English family doctors," Discussion Papers 08/27, Department of Economics, University of York.
  14. Kitae Sohn, 2012. "A New Insight Into The Gender Gap In Math," Bulletin of Economic Research, Wiley Blackwell, vol. 64(1), pages 135-155, 01.
  15. repec:ebl:ecbull:v:10:y:2007:i:6:p:1-11 is not listed on IDEAS
  16. Peter Huber & Doris A. Oberdabernig, 2013. "Does migration threaten the sustainability of European welfare states?," WWWforEurope Working Papers series 21, WWWforEurope.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:boc:dsug05:03. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F Baum).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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