An Extension of the Blinder-Oaxaca Decomposition to Non-Linear 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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- 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.
- Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
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