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Oaxaca-Blinder meets Kitagawa: What is the link?

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  • Ronald L Oaxaca
  • Eva Sierminska

Abstract

Recently, papers have started combining the naming of two popular decomposition methods: the Oaxaca-Blinder (OB) method and the Kitagawa method, a popular method in demographics and sociology. Although the two approaches have the same objective in terms of decomposing outcome differences in some variable of interest between two populations, they are framed quite differently and do not overlap except in a special set of circumstances. In the light of Kitigawa’s early precedence, its more recent association with OB, and the seeming lack of any detailed analysis of the exact relationship between Kitigawa’s methodology in the literature, in this paper we show the precise relationship between Kitagawa’s approach and that of OB. The paper also provides a citation history of the papers.

Suggested Citation

  • Ronald L Oaxaca & Eva Sierminska, 2025. "Oaxaca-Blinder meets Kitagawa: What is the link?," PLOS ONE, Public Library of Science, vol. 20(5), pages 1-8, May.
    • Handle: RePEc:plo:pone00:0321874
    DOI: 10.1371/journal.pone.0321874
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    References listed on IDEAS

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    1. Waitkus, Nora & Minkus, Lara, 2021. "Investigating the gender wealth gap across occupational classes," LSE Research Online Documents on Economics 108206, London School of Economics and Political Science, LSE Library.
    2. Songsermsawas, Tisorn & Kafle, Kashi & Winters, Paul, 2023. "Decomposing the impacts of an agricultural value chain development project by ethnicity and gender in Nepal," World Development, Elsevier, vol. 168(C).
    3. 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.
    4. 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.
    5. Nora Waitkus & Lara Minkus, 2021. "Investigating the Gender Wealth Gap Across Occupational Classes," Feminist Economics, Taylor & Francis Journals, vol. 27(4), pages 114-147, October.
    6. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    7. Chen, Yunwei & Sylvia, Sean & Wu, Paiou & Yi, Hongmei, 2022. "Explaining the declining utilization of village clinics in rural China over time: A decomposition approach," Social Science & Medicine, Elsevier, vol. 301(C).
    8. 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.
    9. Hannes Kröger & Jörg Hartmann, 2021. "Extending the Kitagawa–Oaxaca–Blinder decomposition approach to panel data," Stata Journal, StataCorp LLC, vol. 21(2), pages 360-410, June.
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    Cited by:

    1. Åslund, Olof & Larsson, Fredrik & Laun, Lisa, 2024. "Joining late, leaving early? Immigrant-native disparities in labor market exit," Labour Economics, Elsevier, vol. 89(C).

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    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • J0 - Labor and Demographic Economics - - General

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