# st: How to interpret Oaxaca?

 From Charlotta Magnusson To statalist@hsphsun2.harvard.edu Subject st: How to interpret Oaxaca? Date Mon, 07 Dec 2009 11:55:27 +0100

```Dear listusers,

```
I am using STATA 10 to try to perform Blinder Oaxaca decomposition. I have problem with interpreting the unexplained part for detailed variables. How do I interpret e.g. the variable edu (education) in the unexplained part. (see below) How do I consider the intercept (which is positive for women) when interpreting the variables? (see below) I'm really new to all this and hope you guys don't feel annoyed if myquestions are too basic.
```
Best regards,
Lotta

```
.oaxaca lnwage edu exp exp2 requieedu trained authority autonomy intern public, by (women) pooled detail
```
```
Blinder-Oaxaca decomposition Number of obs = 2844
```
1: women = 0
2: women = 1

------------------------------------------------------------------------------
|               Robust
```
lnwage | Coef. Std. Err. z P>|z| [95% Conf. Interval]
```-------------+----------------------------------------------------------------
Differential |
```
Prediction_1 | 4.788947 .0086897 551.11 0.000 4.771915 4.805978 Prediction_2 | 4.615645 .0067895 679.82 0.000 4.602338 4.628953 Difference | .1733014 .0110276 15.72 0.000 .1516876 .1949151
```-------------+----------------------------------------------------------------
Explained    |
```
edu | -.0034005 .0024698 -1.38 0.169 -.0082412 .0014402
```      exp |   .0125292   .0065196     1.92   0.055    -.0002489    .0253073
```
exp2 | -.0154632 .0045769 -3.38 0.001 -.0244337 -.0064927 requireedu | .0064778 .0029525 2.19 0.028 .000691 .0122646 trained | .0195371 .0029021 6.73 0.000 .0138491 .025225 authority | .0186862 .0029988 6.23 0.000 .0128086 .0245638 autonomy | .0047546 .0012853 3.70 0.000 .0022355 .0072737 intern | .0006255 .00053 1.18 0.238 -.0004133 .0016644 public| .0414331 .0038519 10.76 0.000 .0338835 .0489828 Total | .0851799 .0085466 9.97 0.000 .0684288 .1019309
```-------------+----------------------------------------------------------------
Unexplained  |
```
edu | .1854117 .056676 3.27 0.001 .0743288 .2964945
```      exp |   .0473325   .0463625     1.02   0.307    -.0435363    .1382013
```
exp2 | .0054573 .0276459 0.20 0.844 -.0487276 .0596423 requireedu | -.0016687 .0148152 -0.11 0.910 -.0307059 .0273686 trained | -.0197569 .0311631 -0.63 0.526 -.0808354 .0413216 authority | .0059023 .0051046 1.16 0.248 -.0041025 .0159072 autonomy | .069515 .0237158 2.93 0.003 .0230329 .1159971 intern | -.0061785 .004479 -1.38 0.168 -.0149571 .0026001 public | -.0153003 .008253 -1.85 0.064 -.0314759 .0008753 _cons | -.182593 .0659775 -2.77 0.006 -.3119065 -.0532795 Total | .0881215 .0093661 9.41 0.000 .0697642 .1064787
```------------------------------------------------------------------------------

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