DP5309 Blinder-Oaxaca Decomposition for Tobit Models

Author(s): Thomas Bauer, Mathias Sinning
Publication Date: October 2005
Keyword(s): Blinder-Oaxaca decomposition, Tobit model, wage gap
JEL(s): C24, J31
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=5309

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