The Oaxaca-Blinder decomposition in Stata: an update

In 2008, I published the Stata command -oaxaca-, which implements the popular Oaxaca-Blinder (OB) decomposition technique. This technique is used to analyze differences in outcomes between groups, such as the wage gap by gender or race. Over the years, both the functionality of Stata and the literature on decomposition methods have evolved, so that an update of the -oaxaca- command is now long overdue. In this talk I will present a revised version of -oaxaca- that uses modern Stata features such as factor-variable notation and supports additional decomposition variants that have been proposed in the literature (e.g., reweighted decompositions or decompositions based on recentered influence functions).

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Publication Details

Journal
Open Access CRIS of the University of Bern
Published
2025-03-28
DOI
https://doi.org/10.48620/94140
Primary Topic
Advanced Causal Inference Techniques
Type
article
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article

The Oaxaca-Blinder decomposition in Stata: an update

Ben Jann
Open Access CRIS of the University of Bern
Advanced Causal Inference Techniques
article

The Oaxaca-Blinder decomposition in Stata: an update

Ben Jann
article en

Abstract

In 2008, I published the Stata command -oaxaca-, which implements the popular Oaxaca-Blinder (OB) decomposition technique. This technique is used to analyze differences in outcomes between groups, such as the wage gap by gender or race. Over the years, both the functionality of Stata and the literature on decomposition methods have evolved, so that an update of the -oaxaca- command is now long overdue. In this talk I will present a revised version of -oaxaca- that uses modern Stata features such as factor-variable notation and supports additional decomposition variants that have been proposed in the literature (e.g., reweighted decompositions or decompositions based on recentered influence functions).

Open Access CRIS of the University of Bern
Institut für Soziale Arbeit (DE)
Decent work and economic growth
Openalex Percentile: Top 19%
Advanced Causal Inference Techniques
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The Oaxaca-Blinder decomposition in Stata: an update — Ben Jann · Open Access CRIS of the University of Bern (2025) | TGRS Research Map | TGRS