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The Blinder–Oaxaca decomposition for nonlinear regression models

  • Mathia Sinning


    (Australian National University)

  • Markus Hahn


    (University of Melbourne)

  • Thomas K. Bauer


    (RWI Essen)

In this article, a general Blinder–Oaxaca decomposition for nonlinear models is derived, which allows the difference in an outcome variable between two groups to be decomposed into several components. We show how, using nldecompose, this general decomposition can be applied to different models with discrete and limited dependent variables. We further demonstrate how the standard errors of the estimated components can be calculated by using Stata’s bootstrap command as a prefix. Copyright 2008 by StataCorp LP.

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Article provided by StataCorp LP in its journal Stata Journal.

Volume (Year): 8 (2008)
Issue (Month): 4 (December)
Pages: 480-492

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Handle: RePEc:tsj:stataj:v:8:y:2008:i:4:p:480-492
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  1. Bauer, Thomas K. & Sinning, Mathias, 2006. "An Extension of the Blinder-Oaxaca Decomposition to Non-Linear Models," RWI Discussion Papers 49, RWI - Leibniz-Institut für Wirtschaftsforschung.
  2. Fairlie, Robert, 2014. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Santa Cruz Department of Economics, Working Paper Series qt49c4n0fg, Department of Economics, UC Santa Cruz.
  3. Thomas Bauer & Silja Göhlmann & Mathias Sinning, 2006. "Gender Differences in Smoking Behavior," Health, Econometrics and Data Group (HEDG) Working Papers 06/07, HEDG, c/o Department of Economics, University of York.
  4. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
  5. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  6. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
  7. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April.
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