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Direct comparison or indirect comparison via a series of counterfactual decompositions?

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  • Anna Naszodi

Abstract

We illustrate the point with an empirical analysis of assortative mating in the US, namely, that the outcome of comparing two distant groups can be sensitive to whether comparing the groups directly, or indirectly via a series of counterfactual decompositions involving the groups' comparisons to some intermediate groups. We argue that the latter approach is typically more fit for its purpose.

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  • Anna Naszodi, 2023. "Direct comparison or indirect comparison via a series of counterfactual decompositions?," Papers 2303.04905, arXiv.org.
    • Handle: RePEc:arx:papers:2303.04905
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    References listed on IDEAS

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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. Lasse Eika & Magne Mogstad & Basit Zafar, 2019. "Educational Assortative Mating and Household Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2795-2835.
    3. Anna Naszodi, 2023. "What do surveys say about the historical trend of inequality and the applicability of two table-transformation methods?," Papers 2303.05895, arXiv.org.
    4. Martin Biewen, 2014. "A general decomposition formula with interaction effects," Applied Economics Letters, Taylor & Francis Journals, vol. 21(9), pages 636-642, June.
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    Cited by:

    1. Anna Naszodi, 2023. "What do surveys say about the historical trend of inequality and the applicability of two table-transformation methods?," Papers 2303.05895, arXiv.org.
    2. Anna Naszodi, 2023. "Historical trend in educational homophily: U-shaped or not U-shaped? Or, how to set a criterion to choose a criterion?," Papers 2305.00231, arXiv.org, revised Feb 2024.

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