Empirical likelihood inference for Oaxaca-Blinder decomposition

Taisuke Otsu and Shiori Tanaka

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper proposes an empirical likelihood inference method for the Oaxaca-Blinder decompositions. In contrast to the conventional Wald statistic using the delta method, our approach circumvents the linearization errors and estimation of the variance terms. Furthermore, the shape of the resulting empirical likelihood confidence set is determined flexibly by data. Simulation results illustrate usefulness of the proposed inference method.

Keywords: empirical likelihood; Oaxaca–Blinder decomposition; two-sample test (search for similar items in EconPapers)
JEL-codes: C14 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2022-10-01
New Economics Papers: this item is included in nep-dcm, nep-ecm and nep-ipr
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Published in Economics Letters, 1, October, 2022, 219. ISSN: 0165-1765

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:115982

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