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From |
"Dimitriy V. Masterov" <dvmaster@gmail.com> |

To |
undisclosed-recipients:; |

Subject |
st: To: Statalist <statalist@hsphsun2.harvard.edu> |

Date |
Tue, 13 Nov 2012 17:55:43 -0800 |

I am trying to make sense of the results of a Oxaca-Blinder decomposition produced by Ben Jann's oaxaca command (version 4.0.5 from ssc). I have a binary outcome y, a single continuous explanatory variable x (0-100), and a binary group indicator d: oaxaca y x, by(d) probit nodetail Blinder-Oaxaca decomposition Number of obs = 2178524 Model = probit Group 1: DElectronics_1 = 0 N of obs 1 = 1612480 Group 2: DElectronics_1 = 1 N of obs 2 = 566044 ------------------------------------------------------------------------------ bbe_flag1 | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- overall | group_1 | .0617275 .0001892 326.25 0.000 .0613567 .0620983 group_2 | .0698966 .0003379 206.85 0.000 .0692343 .0705589 difference | -.0081692 .0003873 -21.09 0.000 -.0089282 -.0074101 endowments | -.0135059 .0001323 -102.10 0.000 -.0137651 -.0132466 coefficients | .0024407 .0004099 5.95 0.000 .0016374 .003244 interaction | .002896 .0001549 18.69 0.000 .0025924 .0031996 ------------------------------------------------------------------------------ The rate for Group 2 is about 0.8 of a percent point higher. That can be broken out as the sum: (1) the difference due to different characteristics x (-1.35) (2) the difference in the effect of x on y (+0.24) (3) interaction (+0.3) In the draft version of Yun's 2004 paper (link below), I only see two terms that correspond to (1) and (2) above in the probit example. The interaction seems to be a sort of residual. Where does it come from? Finally, using the SJ version of Yun's mvdcmp command, also produces only two terms. His difference due to coefficients seems to be the sum of (2) and (3) from above. DVM http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDUQFjAB&url=http%3A%2F%2Fftp.iza.org%2Fdp877.pdf&ei=roWiUIjUB-TXigKfk4GYCg&usg=AFQjCNF6vZ3LumWLgT3tZE65rgxqSyoUSg&sig2=XNMCW_y-Cp_ZjdmNZnX64g&cad=rja * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/faqs/resources/statalist-faq/ * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: To: Statalist <statalist@hsphsun2.harvard.edu>***From:*Fernando Rios Avila <f.rios.a@gmail.com>

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