This paper joins discussions on normalized regression and decomposition equations in devising a simple and general algorithm for obtaining the normalized regression and applying it to the Oaxaca decomposition. This resolves the invariance problem in the detailed Oaxaca decomposition. An...

Social scientists are often interested in assessing relative changes between two groups over time, for example, the convergence of black-white wages from 1940 to 1990. In such situations, we need a control group for both treatment groups to remove biases resulting from time trends and unobserved...

Social scientists are often interested in assessing relative changes between two groups over time, for example, the convergence of black-white wages from 1940 to 1990. In such situations, we need a control group for both treatment groups to remove biases resulting from time trends and unobserved...

We propose a simple methodology for decomposing differences in the first moment into characteristics and coefficients effects. This methodology provides a way to apply the Blinder-Oaxaca decomposition to a non-linear function for both aggregate and detailed decompositions

We propose a simple methodology for decomposing differences in the first moment into characteristics and coefficients effects. This methodology provides a way to apply the Blinder-Oaxaca decomposition to a non-linear function for both aggregate and detailed decompositions.