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The Oaxaca–Blinder decomposition in Stata: An update

Ben Jann

German Stata Conference 2025 from Stata Users Group

Abstract: In 2008, I published the Stata command oaxaca, which implements the popular Oaxaca–Blinder (OB) decomposition technique. This technique is used to analyze differences in outcomes between groups, such as the wage gap by gender or race. Over the years, both the functionality of Stata and the literature on decomposition methods have evolved, so that an update of the oaxaca command is now long overdue. In this talk, I will present a revised version of oaxaca that uses modern Stata features such as factor-variable notation and supports additional decomposition variants that have been proposed in the literature (for example, reweighted decompositions or decompositions based on recentered infuence functions).

Date: 2025-04-26
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http://repec.org/dsug2025/Germany25_Jann.pdf

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Working Paper: The Oaxaca-Blinder decomposition in Stata: an update (2024) Downloads
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