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The Blinder–Oaxaca Decomposition for Linear Regression Models
Open accessAbstract
The counterfactual decomposition technique popularized by Blinder (1973, Journal of Human Resources, 436–455) and Oaxaca (1973, International Economic Review, 693–709) is widely used to study mean outcome differences between groups. For example, the technique is often used to analyze wage gaps by sex or race. This article summarizes the technique and addresses several complications, such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new command called oaxaca is introduced, and examples illustrating its usage are given.
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Cites
Sample Selection Bias as a Specification Error
Heckman, J. J. (1979) · Econometrica · doi:10.2307/1912352 · Cited by 28,779
Wage discrimination: Reduced form and structural estimates
Blinder, A. S. (1973) · The Journal of Human Resources · doi:10.2307/144855 · Cited by 6,922
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Metadata
- Authors
- Jann, B.
- Venue
- The Stata Journal: Promoting communications on statistics and Stata
- Publisher
- SAGE Publications
- Published
- 2008-12
- Volume
- 8
- Issue
- 4
- Pages
- 453-479
- ISSN
- 1536-867X (ISSN-L)
- 1536-8734
- OpenAlex
- W2152874686
- Cited by
- 1,860
- References
- 2
- FWCI
- 25.15
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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