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st:Dummy varaibles with Oaxaca decomposition


From   "Simo Hansen" <simohansen@gmail.com>
To   <statalist@hsphsun2.harvard.edu>
Subject   st:Dummy varaibles with Oaxaca decomposition
Date   Wed, 18 Apr 2007 23:37:56 +0300

Dear All,
I am using “oaxaca” program to estimate the decomposition of the gender gap.
My most important aim is to estimate the contribution of each educational
category to the gender gap.  This method also provides a novel solution to
the sensitivity of the results to the choice of the reference education
category:
constraint def 1 ed1+ed2+ed3+ed4+ed5+ed6=0;
generating a variable of ones's and use the noconst option in the
regressions;
gen one=1;
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6 age if female==0,
noconst c(1);
estimates store male;
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6  age  if female==1,
noconst c(1);
estimates store female;
oaxaca male female, weight (omega) detail; 

I need to have some thoughts whether I am at the right track. My concern is
whether by using omega option my pooled regression is based on the following
regression:
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6 age for all sample 

Furthermore, I want to impose another restriction on the pooled regression
model that is:
gen male=1-female;
constraint def 2 male+female=0;
cnsreg lwage one female male ed1 ed2 ed3 ed4 ed5 ed6 age, noconst c(1-2);
How can I use the parameters of the above the pooled regression model as
weights when I implement the “oaxaca programs”?
Thanks for your kind concern in advance.
Best regards,
Simo.




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