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The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator

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  • Tymon Słoczyński

Abstract

type="main" xml:id="obes12075-abs-0001"> In this paper I use the National Supported Work (NSW) data to examine the finite-sample performance of the Oaxaca–Blinder unexplained component as an estimator of the population average treatment effect on the treated (PATT). Precisely, I follow sample and variable selections from Dehejia and Wahba (1999), and conclude that Oaxaca–Blinder performs better than any of the estimators in this influential paper, provided that overlap is imposed. As a robustness check, I consider alternative sample (Smith and Todd, 2005) and variable (Abadie and Imbens, 2011) selections, and present a simulation study which is also based on the NSW data.

Suggested Citation

  • Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    • Handle: RePEc:bla:obuest:v:77:y:2015:i:4:p:588-604
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    File URL: http://hdl.handle.net/10.1111/obes.2015.77.issue-4
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    Cited by:

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    4. Anna Chojecka & Joanna Tyrowicz, 2017. "Zmienne pominięte a luka płacowa kobiet - wnioski z analizy uwzględniającej wydajność," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 29-43.
    5. Graham, Bryan S. & Pinto, Cristine Campos de Xavier, 2022. "Semiparametrically efficient estimation of the average linear regression function," Journal of Econometrics, Elsevier, vol. 226(1), pages 115-138.
    6. Katarzyna Bech & Joanna Tyrowicz, 2017. "Estimating gender wage gap in the presence of efficiency wages -- evidence from European data," GRAPE Working Papers 20, GRAPE Group for Research in Applied Economics.
    7. Igor Jakubiak, 2015. "Immigrants in the United Kingdom: wage gap and origin," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 43.
    8. Marcin Wroński, 2022. "Household wealth in Central and Eastern Europe Explaining the wealth gap between Poland and Hungary," Bank i Kredyt, Narodowy Bank Polski, vol. 53(5), pages 443-474.
    9. Albanese, Giuseppe & Ciani, Emanuele & de Blasio, Guido, 2021. "Anything new in town? The local effects of urban regeneration policies in Italy," Regional Science and Urban Economics, Elsevier, vol. 86(C).

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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