Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059036 | Economics Letters | 2015 | 5 Pages |
Abstract
â¢We present a detailed decomposition method helpful in analyzing the contributing effects in cross-sectional studies.â¢The method specifies the contribution of every variable in the model.â¢The detailed decomposition result can be applied to models in a synthetic cohort analysis.â¢We provide a Stata estimator for practitioners to implement our method.
We present a detailed decomposition method and provide a Stata estimator to assess relative changes between two groups over time in a synthetic cohort analysis. Using the convergence of black-white wage gap between 1960 and 1970 as an example, we show that education accounts for 73% of the value of change in characteristics while experience explains only 3%.
Related Topics
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Authors
Tavis Barr, Carl Lin,