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st: RE: any shortcut for oaxaca decomposition


From   "Stephen P Jenkins" <stephenj@essex.ac.uk>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: RE: any shortcut for oaxaca decomposition
Date   Tue, 25 Nov 2003 12:25:55 -0000

> -----Original Message-----
> From: owner-statalist@hsphsun2.harvard.edu 
> [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Ada Ma
> Sent: 25 November 2003 12:20
> To: statalist@hsphsun2.harvard.edu
> Subject: st: any shortcut for oaxaca decomposition
> 
> 
> Hi,
> 
> I am doing some oaxaca decompositions and I'm looking for 
> some shortcuts, 
> thus I ran the two following estimations:
> 
> [1] separate estimations for male and female: wage = alpha + 
> beta1*gamma + 
> beta2*zeta
> 
> [2] one estimation, but with interactive dummies (female = 1 
> for women)
>      wage = alpha + beta1*gamma + beta2*zeta + beta3*female + 
> beta4*female*gamma + beta5*female*zeta
> 
> Now my question is why is it that the estimated beta1 in [2] 
> differ from 
> that of beta1 in the male estimation in [1]?  And why is it that the 
> summation of beta1 and beta4 in estimation [2] would equal to 
> beta1 for 
> females in estimation [1]?
> 
> I know I'm making different assumptions regarding the error terms in 
> estimations [1] and [2], but what elses are driving the differences?


At first glance I don't know the answer to your question, but note that
users have written commands to do these sorts of decompositions (both
available via -ssc- command): -decomp- and -decompose-


Stephen
-------------------------------------------------------------
Professor Stephen P. Jenkins <stephenj@essex.ac.uk>
Institute for Social and Economic Research
University of Essex, Colchester CO4 3SQ, U.K.
Tel: +44 1206 873374.  Fax: +44 1206 873151.
http://www.iser.essex.ac.uk   

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