A note on variance estimation for the Oaxaca estimator of average treatment effects

Patrick Kline

Economics Letters, 2014, vol. 122, issue 3, 428-431

Abstract: We derive the limiting distribution of the Oaxaca estimator of average treatment effects studied by Kline (2011). A consistent estimator of the asymptotic variance is proposed that makes use of standard regression routines. It is shown that ignoring uncertainty in group means will tend to lead to an overstatement of the asymptotic standard errors. Monte Carlo experiments examine the finite sample performance of competing approaches to inference.

Keywords: Treatment effects; Oaxaca decomposition; Robust variance estimation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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Working Paper: A Note on Variance Estimation for the Oaxaca Estimator of Average Treatment Effects (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:3:p:428-431

DOI: 10.1016/j.econlet.2013.12.026

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