It turns out that the Oaxaca-Blinder wage decomposition is inadequate when it comes to calculation of separate contributions for indicator variables. The contributions are not robust against a change of reference group. I extend the Oaxaca-Blinder decomposition to handle this problem.
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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
98-01.
Length: 18 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:clmsre:98-01
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Find related papers by JEL classification: J70 - Labor and Demographic Economics - - Labor Discrimination - - - General J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
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