2024 Oaxaca decomposition

There is a long tradition of research using the Oaxaca-Blinder (Blinder, 1973; R. Oaxaca, 1973) decomposition technique to examine how much of the gender wage gap is explained by differences in productive characteristics between men and women (Lips, 2013; Ponthieux & Meurs, 2015).. Bohm alec

I'm using the oaxaca package to implement a Blinder-Oaxaca decomposition on a logistic model with binary outcome.. The vignette says that:. Note that, if a non …Gustafsson and Li , Liu et al. , Li and Yang , Li et al. , and Ma et al. use the Blinder–Oaxaca model (Blinder 1973; Oaxaca 1973) for the decomposition analysis, thereby demonstrating that both the explained (e.g., gender differences in educational attainment) and unexplained (e.g., returns to education) components affect the gender …Blinder-Oaxaca decomposition is a statistical method that can be used to quantify how much of the wage differential between two groups can be explained by various control factors. The control variables used in this study are consistent with traditional economic explanations of the gender wage gap; namely, gender differences in human …Blinder Oaxaca Decomposition Use Oaxaca With STATA 17Link Download File Input, Output And Syntax (Command) Blinder Oaxaca Decomposition Use Oaxaca With STATA...This paper investigates gender differences in smoking behaviour using data from the German Socio-economic Panel (SOEP). We develop a Blinder-Oaxaca decomposition method for count data models which allows to isolate the part of the gender differential in the number of cigarettes daily smoked that can be explained by differences in observable characteristics from the part attributable to ...Blinder-Oaxaca decomposition (Blinder, 1973; Oaxaca, 1973) is a counterfactual method that accounts for the difference in means of a dependent variable between two subgroups (${Y}_{1}-{Y}_{2}$). It is used extensively to study sources of the gender wage gap, where the two groups are male and female workers. Here, I use it to …The Blinder–Oaxaca decomposition for linear regression models. Abstract: 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 ...The difference with tretreg is that instead of estimating two different models, treatreg uses only one equation model (think of it as the difference between using a dummy, or two separate equations to in a oaxaca-blinder decomposition type of analysis. The same strategy is used in the oheckman model.The Oaxaca–Blinder decomposition is widely used in other fields, but remains under-utilized in the obesity literature. We provide algebraic and graphical illustrations of the decomposition, and further illustrate it with an example using data for white and black respondents in Mississippi and Alabama. BMI is the outcome of interest.I am currently working on an Oaxaca Blinder decomposition on wage gap between males and females. In the unexplained part, there is a constant. In my model this constant has a value of 0.6 whilst the total of the unexplained part is 0.152. Why is the value of this constant so big and what does this constant mean in the Oaxaca Blinder model?I am currently working on an Oaxaca Blinder decomposition on wage gap between males and females. In the unexplained part, there is a constant. In my model this constant has a value of 0.6 whilst the total of the unexplained part is 0.152. Why is the value of this constant so big and what does this constant mean in the Oaxaca Blinder model?The Blinder-Oaxaca decomposition technique has provided a practical way to apply economist Gary Becker ' s (1971) definition of discrimination as unequal treatment among equivalent people due to race or gender. This decomposition technique has become a basic tool for studying racial and gender wage differentials and discrimination, and it has ...The Blinder Oaxaca decomposition has been widely utilized in economics and health in recent decades to discover and measure disparities between two groups (Blinder 1973; Oaxaca 1973). Ordinary least squares are used in this approach to decompose the difference in mean outcomes between two groups by using their additive separability.the Blinder-Oaxaca decomposition for linear regression models, calculates bootstrapped standard errors for its estimates, and allows users to visualize the decomposition results. Keywords: Blinder-Oaxaca decomposition, linear regression models, R. If you use the oaxaca package in your research, please do not forget to include a citation: Oaxaca-Blinder decomposition, which allows us to simultaneously control for pre-pandemic socio-economic traits associated with labor market opportunities and behavior. We show that a signiﬁcant share of differences in employment loss across demographic groups is explained by differences in pre-epidemic sorting across occupations.Blinder-Oaxaca decompositions are applied to parcel the unadjusted mean price differential between Conventional, VA, FHA, purchase-money mortgage, and all-cash funded housing transaction groups into explained housing/neighborhood characteristics and unexplained coefficient pricing differences. Documenting funding type price differentials …We utilize OLS regressions, Blinder-Oaxaca decomposition, and Juhn-Murphy-Pierce decomposition to make a comprehensive analysis of the contributing factors to the GPG. By 2013, conventional human capital variables explained little of the GPG. Gender differences in location (ownership, occupation, and industry) were important, although the ...The Blinder-Oaxaca decomposition technique, or simply the Oaxaca decomposition, decomposes wage differentials into two components: a portion that arises because two …Jann (2018) warns that if the volume of data is in highly nonlinear regions of $F\left(.\right)$, or differences in coefficients or means are large, the approximation could be poor [].. Additional Analysis. To provide additional policy-related evidence about ethnic disparities in the COVID-19 outcomes, the OB decomposition is carried out by stratifying the sample according to the type of ...Ben Jann, 2008. " OAXACA: Stata module to compute the Blinder-Oaxaca decomposition ," Statistical Software Components S456936, Boston College Department of Economics, revised 24 Apr 2023. Note: This module should be installed from within Stata by typing "ssc install oaxaca". The module is made available under terms of the GPL v3 …This paper investigates gender pay inequality in the labor market of a developing country. Our empirical investigation uses data derived from a sample of employees in the Lebanese banking sector for the years 2008 and 2014. Using Blinder-Oaxaca decomposition, the results reveal that the unexplained component of the gender wage gap, attributed to discrimination, represents a substantial share ...Jun 29, 2021 · The Kitagawa–Oaxaca–Blinder decomposition approach has been widely used to attribute group-level differences in an outcome to differences in endowment, coefficients, and their interactions. The method has been implemented for Stata in the popular oaxaca command for cross-sectional analyses. In recent decades, however, research questions ... The Blinder-Oaxaca decomposition has been a valuable tool for the analysis of wage gaps since its con-ception in the early 1970s (Blinder, 1973 and Oaxaca, 1973). It decomposes the diﬀerences in earnings between two groups into two additive elements: one attributed to the existence of diﬀerences in observableJan 1, 2010 · We analyze four methods to measure unexplained gaps in mean outcomes, three based on the decomposition methods of Oaxaca, 1973, Blinder, 1973 and one based on a pooled regression with a group indicator variable. Our analysis yields two principal findings. We show that, in the case of a single observable characteristic, the coefficient on the ... st: Interpreting Oaxaca with Heckman. From: Carlos Eduardo Hernandez Castillo <[email protected]> Prev by Date: Re: st: oaxaca blinder decomposition after cox; Next by Date: st: RE: Question: Option -by- in -eclplot- revisited; Previous by thread: st: Interpreting Oaxaca with Heckman; Next by thread: st: Use of psmatch2; Index(es): Date; ThreadEmploying the Blinder–Oaxaca decomposition technique borrowed from labour economics, we reveal that education and son preference both play particularly prominent roles in explaining the lower second-child fertility intentions among rural migrants. First, more education is found to promote second-child fertility intentions in urban China.Aug 6, 2021 · This paper introduces the Blinder-Oaxaca decomposition method to be applied in explaining inequality in health outcome across any two groups. In order to understand every aspect of the inequality, multiple regression model can be used in a way to decompose the inequality into contributing factors. measured by test scores), using the traditional Oaxaca-Blinder decomposition method (Oaxaca 1973; Blinder 1973). The model specification that we used to estimate the production function for cognitive achievement is as follows: T ija = T a (A ija, F ija, S ija, I ija) + є ija (1) where T iajThe Blinder-Oaxaca decomposition is a statistical method that decomposes diﬀerences in mean outcomes across two groups into a part that is due to group diﬀerences in the levels of explanatory variables and a part that is due to diﬀerential magni-tudes of regression coeﬃcients.Fundación SOL. Following Oaxaca command (Ben Jann) you should able to see three components of the decomposition: due to endowments, due to coefficients, and due to interactions. In your specific ...There has been considerable interest in using decomposition methods in epidemiology (mediation analysis) and economics (Oaxaca-Blinder decomposition) to understand how health disparities arise and how they might change upon intervention. It has not been clear when estimates from the Oaxaca-Blinder decomposition can be interpreted causally ...st: Interpreting Oaxaca with Heckman. From: Carlos Eduardo Hernandez Castillo <[email protected]> Prev by Date: Re: st: oaxaca blinder decomposition after cox; Next by Date: st: RE: Question: Option -by- in -eclplot- revisited; Previous by thread: st: Interpreting Oaxaca with Heckman; Next by thread: st: Use of psmatch2; Index(es): Date; ThreadBlinder-Oaxaca Decomposition Description. oaxaca performs a Blinder-Oaxaca decomposition for linear regression models (Blinder, 1973; Oaxaca, 1973). This statistical method decomposes the difference in the means of outcome variables across two groups into a part that is due to cross-group differences in explanatory variables and a part that is due to differences in group-specific coefficients. I'm using the oaxaca package to implement a Blinder-Oaxaca decomposition on a logistic model with binary outcome.. The vignette says that:. Note that, if a non …Sautéed cremini mushrooms and crumbled chorizo are the filling for these simple quesadillas with melted Oaxaca, Asadero, Quesillo, or Monterey jack cheese. It's time to dust off the food processor and put the best kitchen appliance to good ...Feb 18, 2021 · The vast majority of existing studies that estimate the average unexplained gender pay gap use unnecessarily restrictive linear versions of the Blinder-Oaxaca decomposition. Using a notably rich and large data set of 1.7 million employees in Switzerland, we investigate how the methodological improvements made possible by such big data affect estimates of the unexplained gender pay gap. We ... decomposition of gross differentials. The decomposition method, the technique used for analyzing earnings differentials, was popularized in the economics literature by Oaxaca (1973) and Blinder (1973). It was used earlier in sociology (Siegel 1965; Duncan 1968), and before that in demography (Kitagawa 1955).Hi all, I'm going to do oaxaca decomposition with the fixed effect estimators in a panel data set. I haven't done this before, so I'll appreciate if you let me know any problem in my following commands. It'll be great if there's easier way to deal with this. Thanks for your help! ----- ***model y[i,t] = B*x[i,t] + u[i] +t + e[i,t] . xtreg y x ...invoked in Oaxaca decompositio ns can be replaced by the weaker ignorability assumption to compute the aggregate decomposition! For example, ability (ε) can be correlated with education (X) as long as the correlation is the same in groups A and B.! Also helps provide a slightly mo re structural foundation to the decomposition.! If we have Y G ...I am writing a paper on the gender pay gap in Lithuania, and my goal is to interpret statistical survey data, determining the factors partially explaining the wage gap (such as age, tenure, education, etc.), using the Oaxaca-Blinder decomposition.The Blinder-Oaxaca decomposition assumes like a normal OLS regression, a linear in parameters connection between the variables and calculates the effects and the means of the variables. Maybe there are differences in other parts of the distribution but not at the mean.Nov 8, 2022 · Hi Chiara. Something else that may be "easy" to do if you want to also give them an intro to mata: If you are doing this "live" is also easier to show them where everything goes, or how it changes. Code: ssc install frause frause oaxaca, clear drop if lnwage==. gen fem_s=female==1 gen male_s=female==0 mata // Females y0 = st_data (.,"lnwage ... The Blinder-Oaxaca decomposition would then also indicate that $0.94 of the unexplained part originates from discrimination in favor of native Hispanic workers (component “unexplained A ...Blinder-Oaxaca decomposition is a straightforward statistical method that emerged in the econometrics literature as a way to explain differences observed between groups with respect to the mean of a continuous variable. To give a few examples, the procedure has been used to investigate potential pay differentials between males and females, or whether health disparities exist amongst ...Keywords: Gender inequality, HIV infection, High-risk people, Blinder-Oaxaca decomposition Background The human immunodeficiency virus (HIV) continues as one of the serious public health challenges in developing countries. According to the Global Burden of Disease Study, the annual incidence of HIV infection was about 2.6 million per year in ...A Semi-Parametric Approach to the Oaxaca-Blinder Decomposition with Continuous Group Variable and Self-Selection by Fernando Rios-Avila Levy Economics Institute of Bard College May 2019 The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants.Blinder-Oaxaca Decomposition interpretation. 10 Apr 2020, 08:25. I am using Blinder Oaxaca decomposition to estimate urban-migrant and urban wage gap. In a two fold decomposition, I am getting negative value of Unexplained part. Explained part is positive and both (explained and unexplained) are significant.Aug 6, 2021 · This paper introduces the Blinder-Oaxaca decomposition method to be applied in explaining inequality in health outcome across any two groups. In order to understand every aspect of the inequality ... Wage Decomposition in Economics Decomposition will help us construct a counterfactual state by Counterfactual Exercises to recovery the causal effect( (sort of causal) of a certain factor. The typical question is “What if⋯” Roughly divide them into two categories: 1 In Mean Oaxaca-Blinder(1974) Brown(1980) Fairlie(1999) 2 In DistributionFinally, we used Oaxaca-Blinder decomposition analysis to better understand black-white differences in the risk of lifetime homeless. 26 27 The Oaxaca-Blinder analytic approach is a regression-based decomposition analysis used to explain the gaps between two groups (eg, non-Hispanic black and white men) in their association with an outcome of ...Oaxaca decomposition method was used to decompose the gender and place of resident differentials. Statistical software RStudio (Version 1.2.1335) was used to perform these analyses RESULTS: The decomposition model was able to explain 46.5%, 41.6% and 46.4% of the difference between frailty, functional limitation and disability among older ...So, when you want to do an Oaxaca-Blinder decomposition, the mills ratio is just a covariate like any other, whose contribution to the raw wage difference can be estimated and then used to see how much of the raw gap comes from nonrandom selection into the two groups you are considering. That's why you want to include mills in the set of ...On discrimination and the decomposition of wage differentials. Ronald Oaxaca and Michael Ransom () Journal of Econometrics, 1994, vol. 61, issue 1, 5-21 Date: 1994 References: Add references at CitEc Citations: View citations in EconPapers (851) Track citations by RSS feed. Downloads: (external link)Blinder-Oaxaca decomposition technique, more than 1000 citations to these two articles were found in the Social Sciences Citation Index. The Blinder-Oaxaca decomposition technique is especially useful for identifying and quantifying the separate contributions of group differences in measurable characteristics, such asStandardized mean decomposition (Oaxaca-Blinder decomposition) 4. How to interpret regression coefficients for a variable with takes positive and negative values? 0.The Oaxaca decomposition (Oaxaca, 1973) is a method of expressing the difference between the mean values of a variable - usually the logarithm of earnings - for two groups based on the coefficients obtained from two group‐specific linear regressions 1 .31 Aug 2017, 11:48. Dear Fangxin, Yes you can use dummy variables with oaxaca. Your code can be represented: Code: oaxaca y i.x1 i.x2, by (group) we assume that xi and x2 are three-level categorical variables. This would not work with oaxaca. First you need to create dummy variables.A pooled Blinder-Oaxaca model was used to analyse inequalities in self-reported health (fair/poor health, low mental well-being and low life satisfaction) and were stratified by the variables relating to financial security, material deprivation and disability status. ... Decomposition of the outcome revealed that just under half of the health ...Oaxaca decomposition (Blinder 1973; Oaxaca 1973). It divides the wage diﬀerential between two groups into a part that is "explained" by group diﬀerences in produc-tivity characteristics, such as education or work experience, and a residual part that cannot be accounted for by such diﬀerences in wage determinants. This "unexplained"However, the Oaxaca-Blinder decomposition technique has the following limitations: (1) it is prone to specification errors and lacks a counterfactual; (2) the choice of the reference group may ...The Blinder-Oaxaca decomposition, also known as Kitagawa decomposition, is a statistical method that explains the difference in the means of a dependent variable between two groups by decomposing the gap into that part that is due to differences in the mean values of the independent variable within the groups, ...The decomposition, which is based on logit regressions for employment status, follows the precedent set by Fairlie (1999 Fairlie ( , 2003 and is a variation of the common Oaxaca-Blinder ...This type of decomposition is based on an approximation of the variation in inequality and is accurate for small changes. Combes et al, 33 in 2011 did a sensitivity analysis using Oaxaca decomposition and TDA separately and suggested that interpretations of Oaxaca method are similar to the TDA results. The third limitation was time ...We implemented an Oaxaca-Blinder decomposition to explain differences in BMI Z-score and obesity between Māori (n = 63,061) and European (n = 139,546) children, and Pacific (n = 21,527) and ...Neuman-Oaxaca decomposition technique. This paper consists of five main sections, including introduction and conclusion. The first section surveys the wages system in Egypt and its structure, the trends and profile of the Egyptian labor market. The second section presents the data description and the characteristics of males' andThe Oaxaca-Blinder, or Blinder-Oaxaca as some call it, decomposition attempts to explain gaps in means of groups. It uses the linear models of two given ...Using the data provided by two ministries of the French public service (environment, transportation and housing) from 2012 to 2016 and employing a novel three-step approach of Blinder-Oaxaca decomposition with a fixed effect model, this article suggests that a 8% gender pay gap against women exists in the allocation of indemnities, where ...alternative scheme is inspired by the original Oaxaca-Blinder decomposition scheme: it is a modified Oaxaca-Blinder decomposition scheme that is free of certain limitations of the original scheme. Although the limitations in question were already pointed out in the late 2000s/early 2010s (see e.g. Jann 2008, Elder, Goddeeris, and Haider 2010, andOaxaca decomposition interpretation - pooled method and reference category. I'm using the Blinder-Oaxaca decomposition to study the wage differentials between males and females. I used logarithm or hourly wages to do that and reported the pooled method. I read a lot of research papers including Jann's paper and I feel like I understand 100% ...I'm using the oaxaca package to implement a Blinder-Oaxaca decomposition on a logistic model with binary outcome.. The vignette says that:. Note that, if a non-linear function such as glm() is chosen, the decomposition will be based on the linear systematic component – usually associated with the estimation of the corresponding latent variable – of the regression method.Usually you can use the community contributed command -oaxaca- (ssc install oaxaca) to obtain the Oaxaca-Blinder decomposition assuming two groups of interest, which is often also related to the treatment. However, you indicate you have 4 treatments, so it isn clear if you want to do the decomposition for each "treatment" or not.The Kitagawa–Oaxaca–Blinder decomposition approach has been widely used to attribute group-level differences in an outcome to differences in endowment, coefficients, and their interactions. The method has been implemented for Stata in the popular oaxaca command for cross-sectional analyses. In recent decades, however, research questions ...Concepts. The study uses the Blinder-Oaxaca decomposition technique to explain the gender wage gap. Blinder-Oaxaca Decomposition Model. An often used methodology to explain the gap in the means of an outcome variable between two groups is known as the Blinder-Oaxaca decomposition model (Blinder 1973; Oaxaca 1973).The theoretical concept of the methodology is explained below.The Blinder-Oaxaca decomposition is a statistical method that decomposes diﬀerences in mean outcomes across two groups into a part that is due to group diﬀerences in the levels of explanatory variables and a part that is due to diﬀerential magni-tudes of regression coeﬃcients.The Kitagawa-Oaxaca-Blinder decomposition approach has been widely used to attribute group-level differences in an outcome to differences in endowment, coefficients, and their interactions. The method has been implemented for Stata in the popular oaxaca command for cross-sectional analyses. In recent decades, however, research questions ...The Oaxaca decomposition used these two numbers to calculate the size of the rural–urban gap. There was a 56-point gap between the average predicted values of rural and urban schools. The method attributed the gap to two potential sources: a difference in resources and a difference in the returns on resources. To distinguish these two …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 ...Easy to do a decomposition by running LP models for the probability of earning less (or more) than 80K, and perform a Oaxaca decomposition on the proportions.! By contrast, much less obvious how to decompose the difference between the 90 th quantile for men (80K) and women (say 65K)! But function linking proportions and quantiles is the cumulativeOne technique I was looking at for showing this was running an Oaxaca-Blinder decomposition between two different countries. I was wondering if anyone could help me with two questions I had regarding this. If comparing average growth rates between two countries in a certain time span, is it better to use GDP growth rates, or take the first ...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.I am currently working on an Oaxaca Blinder decomposition on wage gap between males and females. In the unexplained part, there is a constant. In my model this constant has a value of 0.6 whilst the total of the unexplained part is 0.152. Why is the value of this constant so big and what does this constant mean in the Oaxaca Blinder model?En el trabajo de investigación se analiza la existencia de discriminación salarial por género en los departamentos del eje central de Bolivia y en las pequeñas, medianas y grandes empresas del área urbana; el estudio se sustenta en la teoría del capital humano de Becker [1], aplicándose la metodología de Oaxaca -Blinder [2], para la descomposición salarial de hombres y mujeres.Oaxaca decomposition interpretation - pooled method and reference category. I'm using the Blinder-Oaxaca decomposition to study the wage differentials between males and females. I used logarithm or hourly wages to do that and reported the pooled method. I read a lot of research papers including Jann's paper and I feel like I understand 100% ...popular Oaxaca (1973) decomposition. Yet, this note shows that the interpretation and estimation of longitudinal decompositions is cumbersome when employing fixed effects methods particularly so in the presence of time-invariant characteristics. Unless the group-means for these variables obey certain properties decomposition orThe Oaxaca-Blinder Decomposition. The Oaxaca-Blinder (OB) decomposition is a regression . decomposition method that allows us to break down . the factors associated with the mean labor income gap .Following Oaxaca command (Ben Jann) you should able to see three components of the decomposition: due to endowments, due to coefficients, and due to interactions. In your specific context ...

We used the Blinder-Oaxaca decomposition approach to investigate the importance of factors explaining life satisfaction inequality between the SC/ST and non-SC/ST groups. The Blinder-Oaxaca decomposition approach is important in this study because it can distinguish outcomes attributed to unequal treatment across groups from outcomes .... Biodiversity modelling

Using the Blinder–Oaxaca decomposition method, Duraisamy and Duraisamy confirm the persistence of wage discrimination against SC, ST, OBC and Muslim workers in Indian labour market. They also claim that the higher-wage earners and the upper caste and religious groups have benefited more from economic liberalisation than the low-wage earners.Blinder-Oaxaca decomposition results show that non-poor households and non-Muslim religion are in a disadvantageous position in terms of chronic morbidity.,This paper is based on the cross-sectional nature of data; this is an obvious limitation on the effect of emigration on morbidity differentials among emigrants’ and non-emigrants’ wives ...The Blinder-Oaxaca decomposition found that a large proportion (71%, −0.5 explained of −0.7 net difference) of the difference between Black and White patients in baseline adverse effects was associated with the difference in observed patient characteristics. Unlike the other composite scores, we did not find evidence of …the Blinder-Oaxaca decomposition model for 1997 and 2015 (see, for ex ample, Shepherd, 2008; Burger & Jafta, 2010; Fredericks & Yu, 2017). The structure of the paper will be as follows: Section 2 ...Linden Consulting Group, LLC. Let me update my previous response and add some detail: Stata Journal 8 (4):480--492 introduces the Blinder-Oaxaca decomposition for nonlinear regression models ... The Oaxaca-Blinder decomposition is widely used in other fields, but remains under-utilized in the obesity literature. We provide algebraic and graphical illustrations of the decomposition, and further illustrate it with an example using data for white and black respondents in Mississippi and Alabama. BMI is the outcome of interest.This chapter provides a comprehensive overview of decomposition methods that have been developed since the seminal work of Oaxaca and Blinder in the early 1970s. These methods are used to ...The best beaches in Oaxaca are off the beaten path, including Playa La Boquilla and Playa La Boquilla de Cacaluta. Oaxaca, a state on the southern coast of Mexico, is well-known for its stunning beaches, delicious food scene, and breathtaki...Recentered influence functions (RIFs) are statistical tools popularized by Firpo, Fortin, and Lemieux (2009, Econometrica 77: 953–973) for analyzing unconditional partial effects on quantiles in a regression analysis framework (unconditional quantile regressions). The flexibility and simplicity of these tools have opened the possibility to extend the analysis to …The gap between the high- and low-economic in terms of utilization of eye care services was deconstructed into its determinants by using the Blinder-Oaxaca decomposition method (29,30). This method is based on two regression models, fitted separately for the two population groups (in this study, high- and low-economic groups) .Blinder-Oaxaca Decomposition Description. oaxaca performs a Blinder-Oaxaca decomposition for linear regression models (Blinder, 1973; Oaxaca, 1973). This statistical method decomposes the difference in the means of outcome variables across two groups into a part that is due to cross-group differences in explanatory variables and a part that is due to differences in group-specific coefficients.oaxaca, by Ben Jann; decomp, by Ian Watson; and gdecomp, by Tam´as Bartus. The following section sets out the theoretical framework of the Blinder-Oaxaca decomposition for linear and nonlinear models, taking into account extensions of the original decomposition method that have been applied in the literature. The syntax.

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