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RWI Discussion Papers


Thomas K. Bauer, Mathias Sinning

An Extension of the Blinder-Oaxaca Decomposition to Non-Linear Models

In this paper, a general Blinder-Oaxaca decomposition is derived that can also be applied to non-linear models, which allows the differences in a non-linear outcome variable between two groups to be decomposed into a part that is explained by differences in observed characteristics and a part attributable to differences in the estimated coeffcients. Departing from this general model, we show how it can be applied to different models with discrete and limited dependent variables.


ISBN: 978-3-936454-76-5

ISSN: 1612-3565

JEL-Klassifikation: C13, C20

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