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RWI Discussion Papers

2005

Thomas K. Bauer, Mathias Sinning

Blinder-Oaxaca Decomposition for Tobit Models

In this paper, a decomposition method for Tobit-models is derived, which allows the differences in a censored 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 coefficients. The method is applied to a decomposition of the gender wage gap using German data.

RWI

ISBN: 3-936454-52-3

ISSN: 1612-3565

JEL-Klassifikation: C24, J31

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