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RWI Discussion Papers

2007

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.

RWI

ISBN: 978-3-936454-76-5

ISSN: 1612-3565

JEL-Klassifikation: C13, C20

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