Dear Statalisters,
I am using multinomial logit model of occupation choices (professional,
skilled, non skilled) while using various dummies of race (white, black,
asian etc) as explanatory variables. I want to do a decomposition
(Oaxaca) to see what percentage of the difference in probabilities of
occupational choice (eg. unskilled) of a minority group from that of a
white can be explained by the endowment and what percentage by
coefficients (due to discrimination). I read that in case of non-linear
model there is different methodology for decomposition and I have seen
the one by Bauer & Sinning (Bauer T. & Sinning M. (2005):
"Blinder-Oaxaca Decomposition for Tobit Models", IZA Discussion Paper
no. 1795) but I think it does not include Mlogit option. It would be
greatly appreciated if someone can suggest me about the decomposition of
Mlogit output.
Many Thanks
Bidisha
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