The Blinder Oaxaca decomposition method for defining discrimination from the wage equations of two groups has had a wide degree of application. However, the implication of this measure can very dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This...

The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can vary dramatically depending on the definition of the...