A Stata implementation of the Blinder-Oaxaca decomposition

Ben Jann

No 5, ETH Zurich Sociology Working Papers from ETH Zurich, Chair of Sociology

Abstract: The counterfactual decomposition technique popularized by Blinder (1973) and Oaxaca (1973) 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. The present paper summarizes the technique and addresses a number of complications such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new Stata command called -oaxaca- is introduced and examples illustrating its usage are given.

Keywords: Stata; Blinder-Oaxaca decomposition; outcome differential; wage gap (search for similar items in EconPapers)
JEL-codes: C49 C87 J31 J71 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-05-05, Revised 2008-05-14
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (168)

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http://repec.ethz.ch/ets/papers/jann_oaxaca.pdf Revised version, 2008 (application/pdf)
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Related works:
Software Item: OAXACA: Stata module to compute the Blinder-Oaxaca decomposition (2023)
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