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Discrimination or differing model structures?

Discrimination or differing model structures? The Blinder-Oaxaca (B-O) decomposition has been widely used in continuous outcome comparisons between two groups of people; however, controversies and limitations with this method remain. In this paper, operating under the same-model structure, we suggest employing a multiple regression using a dummy variable to represent discrimination, and we compare this strategy with results obtained from a B-O decomposition and a Neumark decomposition, both in theory and using a simulation study. In addition, we extend these methods to cover binary outcomes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic and Social Measurement IOS Press

Discrimination or differing model structures?

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Publisher
IOS Press
Copyright
Copyright © 2009 by IOS Press, Inc
ISSN
0747-9662
eISSN
1875-8932
DOI
10.3233/JEM-2009-0320
Publisher site
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Abstract

The Blinder-Oaxaca (B-O) decomposition has been widely used in continuous outcome comparisons between two groups of people; however, controversies and limitations with this method remain. In this paper, operating under the same-model structure, we suggest employing a multiple regression using a dummy variable to represent discrimination, and we compare this strategy with results obtained from a B-O decomposition and a Neumark decomposition, both in theory and using a simulation study. In addition, we extend these methods to cover binary outcomes.

Journal

Journal of Economic and Social Measurement – IOS Press

Published: Jan 1, 2009

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