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SSRN Electronic Journal
Article . 2006 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2003
Data sources: EconStor
EconStor
Research . 2006
Data sources: EconStor
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An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models

Authors: Fairlie, Robert;

An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models

Abstract

The Blinder-Oaxaca decomposition technique is widely used to identify and quantify the separate contributions of group differences in measurable characteristics, such as education, experience, marital status, and geographical differences to racial and gender gaps in outcomes. The technique cannot be used directly, however, if the outcome is binary and the coefficients are from a logit or probit model. I describe a relatively simple method of performing a decomposition that uses estimates from a logit or probit model. Expanding on the original application of the technique in Fairlie [3], I provide a more thorough discussion of how to apply the technique, an analysis of the sensitivity of the decomposition estimates to different parameters, and the calculation of standard errors. I also compare the estimates to Blinder-Oaxaca decomposition estimates and discuss an example of when the Blinder-Oaxaca technique may be problematic.

Country
United States
Keywords

inequality, Race, Logit-Modell, labor, entrepreneurship, Social and Behavioral Sciences, decomposition, race, inequality, computer, ICT, entrepreneurship, labor, education, econometrics, Computer, digital divide, logit, computers, Discrimination, gender, C6, Logit, Probit, Decomposition, Race, Gender, Discrimination, C8, race, computer, USA, Internet, education, J15, Decomposition, J16, decomposition, ddc:330, Geschlecht, Gender, Rasse, Probit-Modell, J7, ICT, Logit, probit, Blinder-Oaxaca decomposition, Dekompositionsverfahren, Probit, jel: jel:C8, jel: jel:J7

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    700
    popularity
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    Top 0.1%
    influence
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    impulse
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
700
Top 0.1%
Top 0.1%
Top 1%
Green
bronze