A Stata implementation of the Blinder-Oaxaca decomposition

The counterfactual decomposition technique popularized by Blinder (1973) and Oaxaca (1973) is widely used to study mean outcome differences between groups. For example, the technique is often used to analyze wage gaps by sex or race. The present paper summarizes the technique and addresses a number of complications such as the identification of effects of categorical predictors in the detailed decomposition or the estimation of standard errors. A new Stata command called -oaxaca- is introduced and examples illustrating its usage are given.

The Cube

Rosenthal, Bernard (Tony), artist. Acquired 1968. Located in the Regents Plaza. Gift of the Class of 1965 and the artist, who was a UM alumnus ('36). The Cube will rotate on its axis, given a gentle push.

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