Rios-Avila, Fernando - In: Econometrics : open access journal 7 (2019) 2/28, pp. 1-29
This paper presents an extension to the Oaxaca–Blinder decomposition with continuous groups using a semiparametric approach known as varying coefficients model. To account for potential self-selection into the continuum of groups, the use of inverse mills ratios is expanded upon following the...