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Discussion Paper Details

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Title: Blinder-Oaxaca Decomposition for Tobit Models

Author(s): Thomas Bauer and Mathias Sinning

Publication Date: October 2005

Keyword(s): Blinder-Oaxaca decomposition, Tobit model and wage gap

Programme Area(s): Labour Economics

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

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Bibliographic Reference

Bauer, T and Sinning, M. 2005. 'Blinder-Oaxaca Decomposition for Tobit Models'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5309