Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes
Author
Abstract
Suggested Citation
Download full text from publisher
Other versions of this item:
- Sloczynski, Tymon, 2018. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," IZA Discussion Papers 12041, Institute of Labor Economics (IZA).
References listed on IDEAS
- Paul Allanson & Jonathan Atkins, 2005.
"The Evolution of the Racial Wage Hierarchy in Post-Apartheid South Africa,"
Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 1023-1050.
- Paul Allanson & Jonathan Atkins, 2002. "The Evolution of the Racial Wage Hierarchy in Post- Apartheid South Africa," Dundee Discussion Papers in Economics 136, Economic Studies, University of Dundee.
- LaLonde, Robert J, 1986.
"Evaluating the Econometric Evaluations of Training Programs with Experimental Data,"
American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
- Robert J. LaLonde, 1984. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," Working Papers 563, Princeton University, Department of Economics, Industrial Relations Section..
- Joseph A Ritter & Lowell J Taylor, 2011. "Racial Disparity in Unemployment," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 30-42, February.
- Kevin Lang & Jee-Yeon K. Lehmann, 2012.
"Racial Discrimination in the Labor Market: Theory and Empirics,"
Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
- Kevin Lang & Jee-Yeon K. Lehmann, 2011. "Racial Discrimination In The Labor Market: Theory And Empirics," Boston University - Department of Economics - Working Papers Series WP2011-019, Boston University - Department of Economics.
- Kevin Lang & Jee-Yeon K. Lehmann, 2011. "Racial Discrimination in the Labor Market: Theory and Empirics," NBER Working Papers 17450, National Bureau of Economic Research, Inc.
- Chay, Kenneth Y. & Lee, David S., 2000. "Changes in relative wages in the 1980s Returns to observed and unobserved skills and black-white wage differentials," Journal of Econometrics, Elsevier, vol. 99(1), pages 1-38, November.
- A. Smith, Jeffrey & E. Todd, Petra, 2005.
"Does matching overcome LaLonde's critique of nonexperimental estimators?,"
Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
- Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
- DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996.
"Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach,"
Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
- Nidardo, J. & Fortin, N. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Papers 93-94-15, California Irvine - School of Social Sciences.
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Cahiers de recherche 9406, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
- Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche 9406, Universite de Montreal, Departement de sciences economiques.
- George Sherer, 2000. "Intergroup Economic Inequality in South Africa: The Post-apartheid Era," American Economic Review, American Economic Association, vol. 90(2), pages 317-321, May.
- Hugo Ñopo, 2008.
"Matching as a Tool to Decompose Wage Gaps,"
The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
- Hugo Nopo, 2003. "Matching as a Tool to Decompose Wage Gaps," Middlebury College Working Paper Series 0406, Middlebury College, Department of Economics.
- Nopo, Hugo R., 2004. "Matching as a Tool to Decompose Wage Gaps," IZA Discussion Papers 981, Institute of Labor Economics (IZA).
- Francine D. Blau & Andrea H. Beller, 1988. "Trends in Earnings Differentials by Gender, 1971–1981," ILR Review, Cornell University, ILR School, vol. 41(4), pages 513-529, July.
- D. James Greiner & Donald B. Rubin, 2011. "Causal Effects of Perceived Immutable Characteristics," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 775-785, August.
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003.
"A Meta-Analysis of the International Gender Wage Gap,"
IZA Discussion Papers
906, Institute of Labor Economics (IZA).
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," Economics Series 143, Institute for Advanced Studies.
- Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," CEPR Discussion Papers 4127, C.E.P.R. Discussion Papers.
- Martin Huber, 2015.
"Causal Pitfalls in the Decomposition of Wage Gaps,"
Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 33(2), pages 179-191, April.
- Huber, Martin, 2014. "Causal pitfalls in the decomposition of wage gaps," Economics Working Paper Series 1405, University of St. Gallen, School of Economics and Political Science.
- Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
- Kerwin Kofi Charles & Jonathan Guryan, 2011.
"Studying Discrimination: Fundamental Challenges and Recent Progress,"
Annual Review of Economics, Annual Reviews, vol. 3(1), pages 479-511, September.
- Kerwin Kofi Charles & Jonathan Guryan, 2011. "Studying Discrimination: Fundamental Challenges and Recent Progress," NBER Working Papers 17156, National Bureau of Economic Research, Inc.
- Francine D. Blau & Lawrence M. Kahn, 2017.
"The Gender Wage Gap: Extent, Trends, and Explanations,"
Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
- Blau, Francine D. & Kahn, Lawrence M., 2016. "The Gender Wage Gap: Extent, Trends, and Explanations," IZA Discussion Papers 9656, Institute of Labor Economics (IZA).
- Francine D. Blau & Lawrence Kahn, 2016. "The Gender Wage Gap: Extent, Trends, and Explanations," CESifo Working Paper Series 5722, CESifo.
- Francine D. Blau & Lawrence M. Kahn, 2016. "The Gender Wage Gap: Extent, Trends, and Explanations," NBER Working Papers 21913, National Bureau of Economic Research, Inc.
- Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
- Jeffrey Penney, 2017. "Test Score Measurement and the Black-White Test Score Gap," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 652-656, July.
- Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2010.
"Unexplained gaps and Oaxaca-Blinder decompositions,"
Labour Economics, Elsevier, vol. 17(1), pages 284-290, January.
- Todd E. Elder & John H. Goddeeris & Steven J. Haider, 2009. "Unexplained Gaps and Oaxaca-Blinder Decompositions," CEPR Discussion Papers 600, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2009. "Unexplained Gaps and Oaxaca-Blinder Decompositions," IZA Discussion Papers 4159, Institute of Labor Economics (IZA).
- David Card & Alan B. Krueger, 1992.
"School Quality and Black-White Relative Earnings: A Direct Assessment,"
The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 151-200.
- David Card & Alan B. Krueger, 1990. "School Quality and Black/White Relative Earnings: A Direct Assessment," Working Papers 652, Princeton University, Department of Economics, Industrial Relations Section..
- David Card & Alan B. Krueger, 1991. "School Quality and Black-White Relative Earnings: A Direct Assessment," NBER Working Papers 3713, National Bureau of Economic Research, Inc.
- Timothy N. Bond & Kevin Lang, 2013.
"The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results,"
The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1468-1479, December.
- Timothy N. Bond & Kevin Lang, 2012. "The Evolution of the Black-White Test Score Gap in Grades K-3: The Fragility of Results," NBER Working Papers 17960, National Bureau of Economic Research, Inc.
- Winters, John V. & Hirsch, Barry, 2012. "An Anatomy of Racial and Ethnic Trends in Male Earnings," IZA Discussion Papers 6766, Institute of Labor Economics (IZA).
- Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
- Guido W. Imbens & Jeffrey M. Wooldridge, 2009.
"Recent Developments in the Econometrics of Program Evaluation,"
Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
- Guido Imbens & Jeffrey M. Wooldridge, 2008. "Recent developments in the econometrics of program evaluation," CeMMAP working papers CWP24/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Wooldridge, Jeffrey M. & Imbens, Guido, 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
- Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
- Imbens, Guido W. & Wooldridge, Jeffrey M., 2008. "Recent Developments in the Econometrics of Program Evaluation," IZA Discussion Papers 3640, Institute of Labor Economics (IZA).
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, September.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, September.
- Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
- 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.
- Ronald L Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
- Duncan, Gregory M & Leigh, Duane E, 1985. "The Endogeneity of Union Status: An Empirical Test," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 385-402, July.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
- Joshua D. Angrist, 1998.
"Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants,"
Econometrica, Econometric Society, vol. 66(2), pages 249-288, March.
- Joshua D. Angrist, 1995. "Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants," NBER Working Papers 5192, National Bureau of Economic Research, Inc.
- Kerwin Kofi Charles & Erik Hurst, 2002. "The Transition To Home Ownership And The Black-White Wealth Gap," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 281-297, May.
- Kevin Lang & Michael Manove, 2011.
"Education and Labor Market Discrimination,"
American Economic Review, American Economic Association, vol. 101(4), pages 1467-1496, June.
- Kevin Lang & Michael Manove, 2006. "Education and Labor-Market Discrimination," NBER Working Papers 12257, National Bureau of Economic Research, Inc.
- Kevin Lang & Michael Manove, 2006. "Education and Labor-Market Discrimination," Boston University - Department of Economics - Working Papers Series WP2006-008, Boston University - Department of Economics.
- Leanna Stiefel & Amy Ellen Schwartz & Ingrid Gould Ellen, 2007. "Disentangling the racial test score gap: Probing the evidence in a large urban school district," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(1), pages 7-30.
- Chinhui Juhn, 2003. "Labor Market Dropouts and Trends in the Wages of Black and White Men," ILR Review, Cornell University, ILR School, vol. 56(4), pages 643-662, July.
- Catherine J. Weinberger & Peter J. Kuhn, 2010. "Changing Levels or Changing Slopes? The Narrowing of the Gender Earnings Gap 1959 – 1999," ILR Review, Cornell University, ILR School, vol. 63(3), pages 384-406, April.
- Grogger, Jeff, 1996. "Does School Quality Explain the Recent Black/White Wage Trend?," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 231-253, April.
- Roland G. Fryer & Steven D. Levitt, 2004.
"Understanding the Black-White Test Score Gap in the First Two Years of School,"
The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 447-464, May.
- Roland G. Fryer, Jr. & Steven D. Levitt, 2002. "Understanding the Black-White Test Score Gap in the First Two Years of School," NBER Working Papers 8975, National Bureau of Economic Research, Inc.
- Barsky R. & Bound J. & Charles K.K. & Lupton J.P., 2002.
"Accounting for the Black-White Wealth Gap: A Nonparametric Approach,"
Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 663-673, September.
- Robert Barsky & John Bound & Kerwin Charles & Joseph Lupton, 2001. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," NBER Working Papers 8466, National Bureau of Economic Research, Inc.
- Ricardo Mora, 2008. "A nonparametric decomposition of the Mexican American average wage gap," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 463-485.
- Jesse Rothstein & Nathan Wozny, 2013.
"Permanent Income and the Black-White Test Score Gap,"
Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 510-544.
- Rothstein, Jesse & Wozny, Nathan, 2011. "Permanent Income and the Black-White Test Score Gap," Institute for Research on Labor and Employment, Working Paper Series qt86k5x83k, Institute of Industrial Relations, UC Berkeley.
- Jesse Rothstein & Nathan Wozny, 2011. "Permanent Income and the Black-White Test Score Gap," NBER Working Papers 17610, National Bureau of Economic Research, Inc.
- Nicole M. Fortin, 2008. "The Gender Wage Gap among Young Adults in the United States: The Importance of Money versus People," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
- Celeste K. Carruthers & Marianne H. Wanamaker, 2017.
"Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap,"
Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 655-696.
- Celeste K. Carruthers & Marianne H. Wanamaker, 2015. "Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap," Working Papers 2015-01, University of Tennessee, Department of Economics.
- Celeste K. Carruthers & Marianne H. Wanamaker, 2016. "Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap," NBER Working Papers 21947, National Bureau of Economic Research, Inc.
- Dan Black & Amelia Haviland & Seth Sanders & Lowell Taylor, 2006. "Why Do Minority Men Earn Less? A Study of Wage Differentials among the Highly Educated," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 300-313, May.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Neal, Derek A & Johnson, William R, 1996.
"The Role of Premarket Factors in Black-White Wage Differences,"
Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
- Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc.
- 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.
- 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.).
- Rothe, Christoph, 2010. "Nonparametric estimation of distributional policy effects," Journal of Econometrics, Elsevier, vol. 155(1), pages 56-70, March.
- 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.
- Doris Weichselbaumer & Rudolf Winter‐Ebmer, 2005.
"A Meta‐Analysis of the International Gender Wage Gap,"
Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 479-511, July.
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," IZA Discussion Papers 906, Institute of Labor Economics (IZA).
- Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," Economics Series 143, Institute for Advanced Studies.
- Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," CEPR Discussion Papers 4127, C.E.P.R. Discussion Papers.
- Sergio Pinheiro Firpo, 2017. "Identifying and measuring economic discrimination," IZA World of Labor, Institute of Labor Economics (IZA), pages 347-347, March.
- Patrick Kline, 2011. "Oaxaca-Blinder as a Reweighting Estimator," American Economic Review, American Economic Association, vol. 101(3), pages 532-537, May.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Brajaraja Mishra, 2019. "Households’ attitude about ecosystem conservation after implementation of the Forest Rights Act, 2006, in Lakhari Valley Wildlife Sanctuary, India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 1-23, June.
More about this item
Keywords
black–white gaps; decomposition methods; test scores; treatment effects; wages;JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brd:wpaper:127. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eliza Dumais). General contact details of provider: http://edirc.repec.org/data/gsbraus.html .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.