# Re: st:oaxaca decomposition after fixed effect analysis

 From Dimitris Pavlopoulos <[email protected]> To [email protected] Subject Re: st:oaxaca decomposition after fixed effect analysis Date Mon, 08 Sep 2008 19:51:08 +0200

Dear Mandy,

before checking whether the syntax is correct you should consider how to apply an oaxaca after a fixed effects regression. If you have time constant predictors there is a lot of bias involved. Please see the following reference as an example:

ftp://repec.iza.org/RePEc/Discussionpaper/dp1886.pdf

best regards,
Dimitris

Quoting Man Jia <[email protected]>:

```Hi all,

I'm going to do oaxaca decomposition with the fixed effect estimators
in a panel data set. I haven't done this before, so I'll appreciate if
you let me know any problem in my following commands. It'll be great if
there's easier way to deal with this.
-----------------------------------------------------------------
***model y[i,t] = B*x[i,t] + u[i] +t + e[i,t]
. xtreg y x,few
. predict y_demean ,xb
***x_demean =y[i,t]-mean of y[i,t]
***x_demean is the created variable =x[i,t]-mean of x[i,t]
. oaxaca y_demean  x_demean
-----------------------------------------------------------------
Thank you very much! I really appreciate it.
Regards,

Mandy
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```

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dr. Dimitris Pavlopoulos

International Master in Social Policy Analysis (IMPALLA)
University of Leuven
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