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Re: st: Oaxaca decomposition for beginners
Khalis, the -oaxaca- package has an extensive help file (including a
"Methods and Formulas" Section). See
. help oaxaca
Possibly also read some of the cited literature.
ben
On Fri, Apr 18, 2008 at 2:23 PM, <[email protected]> wrote:
> Hello statalist members,
>
> I'm new to statistics and Stata. I just follow the example in the help
> file but unfortunately I'm not able to interpret the output. I wish to
> test for wage discrimination amongst European and non-European footballers
> using the Oaxaca method. Here is what I did:
>
> . reg logwages caps apps asiprob golprob ycprob rcprob if eu==0
>
> . est sto noneu
>
> . reg logwages caps apps asiprob golprob ycprob rcprob if eu==1
>
> . est sto yeseu
> . oaxaca yeseu noneu
> (high estimates: noneu; low estimates: yeseu)
>
> Mean prediction 1 =
> 10.29027
> Mean prediction 2 =
> 10.08027
> ------------------------------------------------------------------------------
> | Coef. Std. Err. z P>|z| [95% Conf.
> Interval]
> -------------+----------------------------------------------------------------
> difference | .2100054 .0809862 2.59 0.010 .0512754
> .3687354
> ------------------------------------------------------------------------------
>
> Linear decomposition
> ------------------------------------------------------------------------------
> Total | Coef. Std. Err. z P>|z| [95% Conf.
> Interval]
> -------------+----------------------------------------------------------------
> three-fold |
> endowments | .0831522 .0588726 1.41 0.158 -.032236
> .1985405
> coefficients | .1430246 .0879633 1.63 0.104 -.0293803
> .3154294
> interaction | -.0161714 .0717465 -0.23 0.822 -.156792
> .1244493
> ------------------------------------------------------------------------------
>
> . oaxaca noneu yeseu, weight(1 0.5 0 omega)
> (high estimates: noneu; low estimates: yeseu)
>
> Mean prediction 1 =
> 10.29027
> Mean prediction 2 =
> 10.08027
> ------------------------------------------------------------------------------
> | Coef. Std. Err. z P>|z| [95% Conf.
> Interval]
> -------------+----------------------------------------------------------------
> difference | .2100054 .0809862 2.59 0.010 .0512754
> .3687354
> ------------------------------------------------------------------------------
>
> Linear decompositions
> ------------------------------------------------------------------------------
> Total | Coef. Std. Err. z P>|z| [95% Conf.
> Interval]
> -------------+----------------------------------------------------------------
> W=1 |
> explained | .0669809 .0689001 0.97 0.331 -.0680609
> .2020226
> unexplained | .1430246 .0879633 1.63 0.104 -.0293803
> .3154294
> -------------+----------------------------------------------------------------
> W=,5 |
> explained | .0750665 .053101 1.41 0.157 -.0290095
> .1791426
> unexplained | .1349389 .0758584 1.78 0.075 -.0137409
> .2836186
> -------------+----------------------------------------------------------------
> W=0 |
> explained | .0831522 .0588726 1.41 0.158 -.032236
> .1985405
> unexplained | .1268532 .0796571 1.59 0.111 -.0292718
> .2829781
> -------------+----------------------------------------------------------------
> W=omega |
> explained | .0824304 .0512448 1.61 0.108 -.0180075
> .1828683
> unexplained | .127575 .067142 1.90 0.057 -.004021
> .259171
> ------------------------------------------------------------------------------
>
>
> My questions are:
> 1) Am I doing the right thing? (i.e. decomposition)
> 2) How do I use the result to make an interpretation? How much of the
> difference is explained vs. unexplained?
> 3) What is the command weight(1 0.5 0 omega) for?
>
> I'm really new to all this and hope you guys don't feel annoyed if my
> questions are too basic.
>
> Thanks.
> Khalis.
>
>
> *
> * For searches and help try:
> * http://www.stata.com/support/faqs/res/findit.html
> * http://www.stata.com/support/statalist/faq
> * http://www.ats.ucla.edu/stat/stata/
>
*
* For searches and help try:
* http://www.stata.com/support/faqs/res/findit.html
* http://www.stata.com/support/statalist/faq
* http://www.ats.ucla.edu/stat/stata/