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st:Dummy varaibles with Oaxaca decomposition


From   "Simo Hansen" <[email protected]>
To   <[email protected]>
Subject   st:Dummy varaibles with Oaxaca decomposition
Date   Wed, 18 Apr 2007 23:37:56 +0300

Dear All,
I am using �oaxaca� program to estimate the decomposition of the gender gap.
My most important aim is to estimate the contribution of each educational
category to the gender gap.� This method also provides a novel solution to
the sensitivity of the results to the choice of the reference education
category:
constraint def 1 ed1+ed2+ed3+ed4+ed5+ed6=0;
generating a variable of ones's and use the noconst option in the
regressions;
gen one=1;
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6 age if female==0,
noconst c(1);
estimates store male;
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6 �age �if female==1,
noconst c(1);
estimates store female;
oaxaca male female, weight (omega) detail; 

I need to have some thoughts whether I am at the right track. My concern is
whether by using omega option my pooled regression is based on the following
regression:
cnsreg lwage one ed1 ed2 ed3 ed4 ed5 ed6 age for all sample 

Furthermore, I want to impose another restriction on the pooled regression
model that is:
gen male=1-female;
constraint def 2 male+female=0;
cnsreg lwage one female male ed1 ed2 ed3 ed4 ed5 ed6 age, noconst c(1-2);
How can I use the parameters of the above the pooled regression model as
weights when I implement the �oaxaca programs�?
Thanks for your kind concern in advance.
Best regards,
Simo.




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