st: RE: Oaxaca - Negative value for unexplained portion Oaxaca - Negative value for unexplained portion

["STANEVA A. (497186)" <A.V.STANEVA.497186@swansea.ac.uk>]

The negative value for the discrimination component (or unexplained part) in your case suggests that black women are paid more than white, which is a bit puzzled. Try to run the decomposition by including more characteristics and see whether it will change. What about the endowment component?
Best

________________________________________
From: owner-statalist@hsphsun2.harvard.edu [owner-statalist@hsphsun2.harvard.edu] on behalf of Sol Kizzy Ruiz Rodriguez [solky54@gmail.com]
Sent: 06 March 2012 04:38
To: statalist@hsphsun2.harvard.edu
Subject: st: Oaxaca - Negative value for unexplained portion Oaxaca - Negative value for unexplained portion

Dear Statalist,

I am decomposing the white female (high mod) - black female (low mod)
wage gap using oaxaca command in Stata.

I got negative value for the unexplained portion (differential due to
coefficients a.k.a. discrimination). And when I looked closer, most of
this -negativity- is due to the effect of the intercept coefficient.

Now, I am wondering how to interpret this negative value.
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