A Stata implementation of the Blinder-Oaxaca decomposition
AbstractThe counterfactual decomposition technique popularized by Blinder (1973) and Oaxaca (1973) 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. The present paper summarizes the technique and addresses a number of complications such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new Stata command called -oaxaca- is introduced and examples illustrating its usage are given.
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Bibliographic InfoPaper provided by ETH Zurich, Chair of Sociology in its series ETH Zurich Sociology Working Papers with number 5.
Length: 25 pages
Date of creation: 05 May 2008
Date of revision: 14 May 2008
Contact details of provider:
Web page: http://www.socio.ethz.ch/
Stata; Blinder-Oaxaca decomposition; outcome differential; wage gap;
Other versions of this item:
- Ben Jann, 2008. "OAXACA: Stata module to compute the Blinder-Oaxaca decomposition," Statistical Software Components S456936, Boston College Department of Economics, revised 25 Aug 2011.
- C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
- C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
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