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Decomposing The Gap In School Achievement Between Finland And Romania '" Some Methodological Aspects

  • Botezat Alina


    (Romanian Academy - Iasi Branch, ICES "Gh.Zane" Iasi)

This paper analyzes the advantages and shortcomings of the Blinder-Oaxaca decomposition. Using PISA data for Finland and Romania, we focus on the drawbacks of the detailed decomposition, when the explanatory variables are categorial. From the best of our knowledge, this kind of analysis is performed for the first time using PISA data.We show that, using covariates which are categorial, the partial characteristics effects can be different when we use different reference categories of the respective variable. However, the overall characteristics effect of a categorical variable does not depend on the omitted category. The more critical aspect of the interpretation of detailed decomposition, when explanatory variables are categorical, regards the unexplained part of the gap. As we empirically show, the both components of the unexplained part are sensitive to choices of the reference category. These aspects should be taken into account when we perform detailed decompositions with categorial variables.

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Article provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.

Volume (Year): 1 (2012)
Issue (Month): 2 (December)
Pages: 165-171

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Handle: RePEc:ora:journl:v:1:y:2012:i:2:p:165-171
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  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. Jonathan Sandy & Kevin Duncan, 2010. "Examining the achievement test score gap between urban and suburban students," Education Economics, Taylor & Francis Journals, vol. 18(3), pages 297-315.
  4. Kevin C. Duncan & Jonathan Sandy, 2007. "Explaining the Performance Gap Between Public and Private School Students," Eastern Economic Journal, Eastern Economic Association, vol. 33(2), pages 177-191, Spring.
  5. Patacchini, Eleonora & Zenou, Yves, 2009. "On the sources of the black-white test score gap in Europe," Economics Letters, Elsevier, vol. 102(1), pages 49-52, January.
  6. Patrick Mcewan & Jeffery Marshall, 2004. "Why does academic achievement vary across countries? Evidence from Cuba and Mexico," Education Economics, Taylor & Francis Journals, vol. 12(3), pages 205-217.
  7. Cook, Michael D & Evans, William N, 2000. "Families or Schools? Explaining the Convergence in White and Black Academic Performance," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 729-54, October.
  8. Cho, Donghun, 2007. "The role of high school performance in explaining women's rising college enrollment," Economics of Education Review, Elsevier, vol. 26(4), pages 450-462, August.
  9. John M. Krieg & Paul Storer, 2006. "How Much Do Students Matter? Applying The Oaxaca Decomposition To Explain Determinants Of Adequate Yearly Progress," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 563-581, October.
  10. F. L. Jones & Jonathan Kelley, 1984. "Decomposing Differences between Groups," Sociological Methods & Research, , vol. 12(3), pages 323-343, February.
  11. Nicole Schneeweis, 2011. "Educational institutions and the integration of migrants," Journal of Population Economics, Springer, vol. 24(4), pages 1281-1308, October.
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