Blinder-Oaxaca Decomposition for Tobit Models

13 Pages Posted: 30 Dec 2005

See all articles by Thomas K. Bauer

Thomas K. Bauer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); University of Bochum - Faculty of Economics; IZA Institute of Labor Economics

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

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Date Written: October 2005

Abstract

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: Tobit-model, Blinder-Oaxaca decomposition, wage gap

JEL Classification: C24, J31

Suggested Citation

Bauer, Thomas K. and Sinning, Mathias, Blinder-Oaxaca Decomposition for Tobit Models (October 2005). CEPR Discussion Paper No. 5309, Available at SSRN: https://ssrn.com/abstract=872862

Thomas K. Bauer (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

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IZA Institute of Labor Economics ( email )

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Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
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Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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