Blinder-Oaxaca Decomposition for Tobit Models
13 Pages Posted: 13 Oct 2005
Date Written: October 2005
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.
Keywords: Blinder-Oaxaca decomposition, Tobit model, wage gap
JEL Classification: C24, J31
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