IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-07c00003.html
   My bibliography  Save this article

A computational trick for calculating the Blinder-Oaxaca decomposition and its standard error

Author

Listed:
  • Peter Kennedy

    (Simon Fraser University)

  • Jutta Heinrichs

    (Associated Economic Consultants)

Abstract

To compute the Blinder-Oaxaca decomposition and associated standard errors a practitioner needs to be comfortable using vector and matrix software manipulations. This paper proposes a computational trick for producing these computations by running an artificial regression.

Suggested Citation

  • Peter Kennedy & Jutta Heinrichs, 2007. "A computational trick for calculating the Blinder-Oaxaca decomposition and its standard error," Economics Bulletin, AccessEcon, vol. 3(66), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07c00003
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2007/Volume3/EB-07C00003A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    3. Salkever, David S., 1976. "The use of dummy variables to compute predictions, prediction errors, and confidence intervals," Journal of Econometrics, Elsevier, vol. 4(4), pages 393-397, November.
    4. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    2. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
    3. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ebl:ecbull:v:3:y:2007:i:66:p:1-7 is not listed on IDEAS
    2. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    3. Cattaneo, Maria Alejandra & Wolter, Stefan C., 2012. "Migration Policy Can Boost PISA Results: Findings from a Natural Experiment," IZA Discussion Papers 6300, Institute of Labor Economics (IZA).
    4. Jakub Picka, 2014. "Problém "public-private pay gap" v České republice [The Public-Private Pay Gap in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(5), pages 662-682.
    5. repec:pra:mprapa:48888 is not listed on IDEAS
    6. Eva Rueckert, 2003. "Bootstrapping the European Gender Wage Gap," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
    7. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    8. John Ariza & Gabriel Montes-Rojas, 2019. "Decomposition methods for analyzing inequality changes in Latin America 2002–2014," Empirical Economics, Springer, vol. 57(6), pages 2043-2078, December.
    9. Betts, Julian R. & Fairlie, Robert W., 2001. "Explaining Ethnic, Racial, and Immigrant Differences in Private School Attendance," Journal of Urban Economics, Elsevier, vol. 50(1), pages 26-51, July.
    10. B. Philip Jeon & Walter Simmons, 1998. "Reward for being an immigrant: Earnings gap between immigrant and native-born West Indians," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(3), pages 309-316, September.
    11. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    12. Gabriel Montes-Rojas & Lucas Siga & Ram Mainali, 2017. "Mean and quantile regression Oaxaca-Blinder decompositions with an application to caste discrimination," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(3), pages 245-255, September.
    13. Emilia Ene Jones & Florent Sari, 2016. "L’adresse contribue-t-elle à expliquer les écarts de salaires ?. Le cas de jeunes sortant du système scolaire," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(1), pages 203-244.
    14. Bodvarsson, Őrn B. & Papps, Kerry L. & Sessions, John G., 2014. "Cross-assignment discrimination in pay: A test case of major league baseball," Labour Economics, Elsevier, vol. 28(C), pages 84-95.
    15. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    16. Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute of Labor Economics (IZA).
    17. Leslie I. Boden & Monica Galizzi, 2003. "Income Losses of Women and Men Injured at Work," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
    18. Oscar Molina Tejerina & Luis Castro Peñarrieta, 2020. "Unexplained Wage Gaps in the Tradable and Nontradable Sectors: Cross-Sectional Evidence by Gender in Bolivia," Investigación & Desarrollo 0120, Universidad Privada Boliviana, revised Nov 2020.
    19. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    20. Liliane Bonnal & Rachid Boumahdi & Pascal Favard, 2013. "The easiest way to estimate the Oaxaca-Blinder decomposition," Applied Economics Letters, Taylor & Francis Journals, vol. 20(1), pages 96-101, January.
    21. Swaffield, Joanna, 2000. "Gender, motivation, experience and wages," LSE Research Online Documents on Economics 20188, London School of Economics and Political Science, LSE Library.
    22. Yun Liang & John Gibson, 2017. "Location or Hukou: What Most Limits Fertility of Urban Women in China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 527-540, September.

    More about this item

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07c00003. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.