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The Decomposition of Inter-Group Differences in a Logit Model: Extending the Oaxaca-Blinder Approach with an Application to School Enrolment in India

Author

Listed:
  • Borooah, Vani
  • Iyer, Sriya

Abstract

This paper suggests a method of decomposing differences in inter-group probabilities from a logit model and shows how it can be related to similar decompositions derived from a Oaxaca-Blinder framework. In so doing, it offers a solution to a problem, embedded within the Oaxaca-Blinder decomposition, relating to the appropriate choice of common coefficient vectors with which to evaluate the different attribute vectors. The decomposition method also shows how pair-wise comparisons of groups might be conducted in the presence of more than two groups, without discarding the information on groups excluded from the comparison. The proposed method is applied to inter-group differences in schooling participation in India and the results are compared with the Oaxaca-Blinder method. The decomposition is applied specifically to inter-group differences in the enrolment of boys at school in India.

Suggested Citation

  • Borooah, Vani & Iyer, Sriya, 2005. "The Decomposition of Inter-Group Differences in a Logit Model: Extending the Oaxaca-Blinder Approach with an Application to School Enrolment in India," MPRA Paper 19418, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19418
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    File URL: https://mpra.ub.uni-muenchen.de/19418/1/MPRA_paper_19418.pdf
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    References listed on IDEAS

    as
    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. 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.
    3. Blackaby, David, et al, 1999. "Unemployment among Britain's Ethnic Minorities," Manchester School, University of Manchester, vol. 67(1), pages 1-20, January.
    4. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
    5. Blackaby, David H, et al, 1997. "A Picture of Male and Female Unemployment among Britain's Ethnic Minorities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(2), pages 182-197, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Carlos Gradín, 2012. "Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3793-3804, October.
    2. Vani Borooah, 2010. "Gender Differences in the Incidence of Depression and Anxiety: Econometric Evidence from the USA," Journal of Happiness Studies, Springer, vol. 11(6), pages 663-682, December.
    3. Borooah, Vani K. & Mangan, John, 2007. "Living here, born there: The economic life of Australia's immigrants," European Journal of Political Economy, Elsevier, vol. 23(2), pages 486-511, June.
    4. Margaret Maurer-Fazio & James W. Hughes & Dandan Zhang, 2010. "A comparison and decomposition of reform-era labor force participation rates of China's ethnic minorities and Han majority," International Journal of Manpower, Emerald Group Publishing, vol. 31(2), pages 138-162, May.
    5. Carlos Gradin, 2009. "Why is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1426-1452.
    6. Vani K. Borooah & John Mangan, 2009. "Multiculturalism versus Assimilation: Attitudes towards Immigrants in Western Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 2(2), pages 33-50, December.
    7. Floro Ernesto Caroleo & Gianna Claudia Giannelli & Francesco Pastore, 2010. "Vulnerability and discrimination among women, children and ethnic minorities," International Journal of Manpower, Emerald Group Publishing, vol. 31(2), pages 101-108, May.
    8. repec:lan:wpaper:4484 is not listed on IDEAS
    9. Ham, Roger & Junankar, Pramod N. (Raja) & Wells, Robert, 2009. "Occupational Choice: Personality Matters," IZA Discussion Papers 4105, Institute for the Study of Labor (IZA).
    10. repec:lan:wpaper:4789 is not listed on IDEAS
    11. Martin Wittenberg, 2007. "Dissecting post-apartheid labour market developments: Decomposing a discrete choice model while dealing with unobservables," Working Papers 46, Economic Research Southern Africa.
    12. Vani Borooah & Anastasios Katos & Eleni Katsouli, 2013. "Inter-country differences in voter satisfaction with the democratic process: a study of world elections," Public Choice, Springer, vol. 157(3), pages 569-584, December.
    13. Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute for the Study of Labor (IZA).
    14. Borooah, Vani K. & Dineen, Donal A. & Lynch, Nicola, 2009. "Language and Occupational Status: Linguistic Elitism in the Irish Labour Market," The Economic and Social Review, Economic and Social Studies, vol. 40(4), pages 435-460.
    15. Borooah, Vani & Myers, Samuel, 2014. "Discriminatory Behaviour: Issues Related to Theory and Measurement," MPRA Paper 75712, University Library of Munich, Germany.
    16. repec:lan:wpaper:4356 is not listed on IDEAS
    17. Woojin Chung & Monica Das Gupta, 2007. "The Decline of Son Preference in South Korea: The Roles of Development and Public Policy," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 757-783.
    18. A Aggarwal & R Freguglia & G Johnes & G Spricigo, 2011. "Education and labour market outcomes : evidence from India," Working Papers 615663, Lancaster University Management School, Economics Department.
    19. Connelly, Rachel & Maurer-Fazio, Margaret & Zhang, Dandan, 2014. "The Role of Coresidency with Adult Children in the Labor Force Participation Decisions of Older Men and Women in China," IZA Discussion Papers 8068, Institute for the Study of Labor (IZA).
    20. Patrizia Luongo, 2010. "Inequality of Opportunity in the Labour Market Entry of Graduates in Italy," SERIES 0030, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised May 2010.
    21. repec:lan:wpaper:4355 is not listed on IDEAS

    More about this item

    Keywords

    Logit regression; school enrolment; India; decomposition methods;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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