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The Oaxaca-Blinder unexplained component as a treatment effects estimator


  • Tymon Sloczynski

    () (Warsaw School of Economics)


In this paper I use the National Supported Work (NSW) data to examine the validity of the Oaxaca–Blinder unexplained component as an estimator of the population average treatment effect on the treated (PATT). Precisely, I utilize dataset and variable selections used in previous studies of the NSW data to compare the performance of the Oaxaca–Blinder unexplained component with methods based on the propensity score (Dehejia and Wahba, 1999) and bias-corrected matching estimators (Abadie and Imbens, 2011). I show that in both cases the Oaxaca–Blinder unexplained component performs superior compared to the previously analyzed estimators provided that common support is imposed.

Suggested Citation

  • Tymon Sloczynski, 2012. "The Oaxaca-Blinder unexplained component as a treatment effects estimator," Working Papers 61, Department of Applied Econometrics, Warsaw School of Economics.
  • Handle: RePEc:wse:wpaper:61

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    References listed on IDEAS

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    Cited by:

    1. Carrieri, V. & Jones, A.M., 2015. "The Income-Health Relationship “Beyond the Mean†: New Evidence from Biomarkers," Health, Econometrics and Data Group (HEDG) Working Papers 15/22, HEDG, c/o Department of Economics, University of York.
    2. Katarzyna Bech & Joanna Tyrowicz, 2017. "Estimating gender wage gap in the presence of efficiency wages -- evidence from European data," GRAPE Working Papers 20, GRAPE Group for Research in Applied Economics.
    3. Igor Jakubiak, 2015. "Immigrants in the United Kingdom: wage gap and origin," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 43.
    4. repec:sgh:gosnar:y:2017:i:2:p:29-43 is not listed on IDEAS

    More about this item


    decomposition methods; Manpower training; Treatment effects;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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