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The Blinder–Oaxaca decomposition for nonlinear regression models

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  • Sinning, Mathias
  • Hahn, Markus
  • Bauer, Thomas K.

Abstract

In this article, a general Blinder–Oaxaca decomposition for nonlinear models is derived, which allows the difference in an outcome variable between two groups to be decomposed into several components. We show how, using nldecompose, this general decomposition can be applied to different models with discrete and limited dependent variables. We further demonstrate how the standard errors of the estimated components can be calculated by using Stata's bootstrap command as a prefix.

Suggested Citation

  • Sinning, Mathias & Hahn, Markus & Bauer, Thomas K., 2008. "The Blinder–Oaxaca decomposition for nonlinear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 1-13.
  • Handle: RePEc:ags:stataj:122616
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    1. repec:ags:stataj:122615 is not listed on IDEAS
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    9. Jann, Ben, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 1-27.
    10. 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.
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    Keywords

    Research Methods/ Statistical Methods;

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