Elder, Todd E.; Goddeeris, John H.; Haider, Steven J. - Research School of Economics, College of Business and … - 2009
We analyze four methods to measure unexplained gaps in mean outcomes: three decompositions based on the seminal work of Oaxaca (1973) and Blinder (1973) and an approach involving a seemingly naïve regression that includes a group indicator variable. Our analysis yields two principal findings....
