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# Re: st: Blinder-Oaxaca decomposition - Interpretation of output

 From Muhammad Anees To statalist@hsphsun2.harvard.edu Subject Re: st: Blinder-Oaxaca decomposition - Interpretation of output Date Tue, 4 Dec 2012 16:36:13 +0500

```Do you have the following working paper?

Ben Jann, 2008, A Stata implementation of the Blinder-Oaxaca
decomposition, ETH Zurich Sociology Working Paper No. 5

Hope this helps you.

Anees

On Tue, Dec 4, 2012 at 3:44 PM, Bettina Lamla <Lamla@mea.mpisoc.mpg.de> wrote:
> Dear all,
>
> I perform a decomposition analysis using the Oaxaca command from Ben Jann. I have Stata 12.1.
>
> In every specification I find the group difference to be statistically significant, however neither endowments, coefficients not the interaction between these two seem to explain the difference (not significant). I struggle with the interpretation. Can anyone help?
>
> Thanks!
>
> Here is a part of the output:
>
> Blinder-Oaxaca decomposition
>                                         Number of obs   =   1076
>                                                         Model           =         linear
> Group 1: east = 0                                 N of obs 1      =        690
> Group 2: east = 1                                 N of obs 2      =        386
>
> ------------------------------------------------------------------------------
>        flit3 |           Coef.       Std. Err.      z          P>|z|     [95% Conf. Interval]
> -------------  +----------------------------------------------------------------
> overall        |
>      group_1 |   .5391304   .0192225    28.05   0.000     .5014551    .5768057
>      group_2 |   .4378238   .0258589    16.93   0.000     .3871413    .4885063
>   difference |   .1013066   .0322209     3.14    0.002     .0381548    .1644584
>  endowments | .019734   .0314114     0.63    0.530    -.0418313    .0812993
> coefficients |   .0345781   .0352739     0.98    0.327    -.0345575    .1037137
>  interaction |   .0469945   .0349906     1.34   0.179    -.0215857    .1155748
>
>
>
>
> *
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--

Best
---------------------------
Assistant Professor/Programme Coordinator
COMSATS Institute of Information Technology
Attock 43600, Pakistan
http://www.aneconomist.com

*
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```