An extension of the Blinder–Oaxaca decomposition to nonlinear models
In this paper, a general Blinder-Oaxaca decomposition is derived that can also be applied to non-linear models, which allows the differences in a non-linear outcome variable between two groups to be decomposed into a part that is explained by differences in observed characteristics and a part attributable to differences in the estimated coeffcients. Departing from this general model, we show how it can be applied to different models with discrete and limited dependent variables.
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Volume (Year): 92 (2008)
Issue (Month): 2 (May)
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