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The Blinder–Oaxaca Decomposition for Linear Regression Models

Bibliographic Data

ID23312944
AuthorsBen Jann (0000-0001-9855-1967, ETH Zurich, corresponding author)
Year2008
Volume8
Issue4
Pages453-479
Publication date2008-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Stata Journal: Promoting communications on statistics and Stata (JOURNAL)
Journal identifiersISSN: 1536-867X • E-ISSN: 1536-8734
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/1536867x0800800401
OpenAlexW2152874686
LanguageEN
Citations received582
References cited32

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. This article summarizes the technique and addresses several complications, such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new command called oaxaca is introduced, and examples illustrating its usage are given.

Categorical variable · Counterfactual thinking · Decomposition · Econometrics · Identification (biology) · Linear regression · Mathematical economics · Outcome (game theory) · Regression · Statistics · Computer Science · Income, Poverty, and Inequality · Intergenerational and Educational Inequality Studies · Labor market dynamics and wage inequality · Mathematics · Psychology · Social Psychology

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Unique citing works582
Citations per year32,33
Citation span2008 - 2026 (19)
Citation velocitycurrent
Highly citedYes
Citation typesNeutral: 526

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