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An Extension of the Blinder-Oaxaca Decomposition to Non-Linear Models

Baurer, Thomas K.; Sinning, Mathias


This paper develops a general Blinder-axaca decomposition that allows the differences in an outcome variable between two groups to be decomposed into (i) a part that is explained by differences in observed characteristics and (ii) a part attributable to differences in the estimated coefficients also for nonlinear regression models. Based on this general model, we show how it can be applied to different models with discrete and limited dependent variables.

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
Source: Advances in Statistical Analysis
DOI: 10.1007/s10182-008-0056-3


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