{smcl}
{* 19feb2008}{...}
{hi:help wagegap}{right:also see: {helpb adolist}}
{hline}

{title:Title}

{p 4 15 2}{hi:wagegap} {hline 2} Wage gap decomposition packages


{title:Description}

{pstd}
This package list comprises ado packages used for the
decomposition of wage gaps or income differentials between
groups and related applications.


{title:Packages}

{dlgtab:Decomposition of wage differentials}

{p 4 19 2}{helpb oaxaca}{space 6}
module to compute Blinder-Oaxaca decomposition {it:by} Ben Jann
{p_end}
{p 4 19 2}{helpb decomp}{space 6}
alternate module to compute Blinder-Oaxaca decomposition {it:by} Ian Watson
{p_end}
{p 4 19 2}{helpb decompose}{space 3}
antecessor of {cmd:oaxaca} {it:by} Ben Jann
{p_end}

{dlgtab:Difference-in-difference decomposition}

{p 4 19 2}{helpb jmpierce2}{space 3}
module to compute trend decomposition of wage differentials {it:by} Ben Jann
{p_end}
{p 4 19 2}{helpb smithwelch}{space 2}
alternate module to compute trend decomposition of wage differentials {it:by} Ben Jann
{p_end}

{dlgtab:Generalizations}

{p 4 19 2}{helpb gdecomp}{space 5}
module to compute non-linear Blinder-Oaxaca decomposition {it:by} Tamas Bartus
{p_end}
{p 4 19 2}{helpb fairlie}{space 5}
module to compute Fairlie decomposition for binary outcomes {it:by} Ben Jann
{p_end}
{p 4 19 2}{helpb jmpierce}{space 4}
module to compute decomposition of differences in various statistics {it:by} Ben Jann
{p_end}
{p 4 19 2}{helpb dfl}{space 9}
module to compute DiNardo/Fortin/Lemieux counterfactual densities {it:by} Joao Pedro Azevedo
{p_end}

{dlgtab:Related packages}

{p 4 19 2}{helpb devcon}{space 6}
module to apply the deviation contrast transform {it:by} Ben Jann
{p_end}
{p 4 19 2}{helpb margeff}{space 5}
module required by {cmd:gdecomp} {it:by} Tamas Bartus
{p_end}


{title:Remarks}

{pstd}{cmd:oaxaca}, {cmd:decomp}, and {cmd:decompose} compute the classical
Blinder-Oaxaca wage gap decomposition (Blinder 1973, Oaxaca 1973). {cmd:oaxaca}
provides standard errors for the decomposition components. {cmd:decompose} is an
early version of {cmd:oaxaca}.

{pstd}{cmd:jmpierce2} and {cmd:smithwelch} are concerned with the decomposition
of changes in the wage gap over time (Juhn et al. 1991, Smith and Welch 1989)
or, say, wage gap differences between countries (Blau and Kahn 1996).

{pstd}{cmd:gdecomp} uses marginal effect to generalize the Blinder-Oaxaca
decomposition to nonlinear models. {cmd:fairlie} implements one approach
to decompose group differences in a binary outcome suggested by Fairlie
(2005).

{pstd}{cmd:jmpierce} and {cmd:dfl} are concerned with differences in
distributional properties in general, not only in means. Whereas
{cmd:jmpierce} provides a method to decompose differences in various
summary measures based on adjusted residual distributions (Juhn et al. 1993),
{cmd:dfl} focuses on differences in counterfactual density functions based
on reweighting (DiNardo et al. 1996).

{pstd}{cmd:devcon} provides a solution for the identification problem
that exists with categorical regressors in the Blinder-Oaxaca decomposition.
{cmd:margeff} is a package required by {cmd:gdecomp}. It computes partial
effects after model estimation.

{pstd}What is certainly missing in this collection is a package to implement
decomposition methods based on quantile regression in the manner of,
e.g., Machado and Mata (2005). Furthermore, it would be wishful to have
implementations of alternative decomposition approaches for binary outcomes
(see the references in help {helpb fairlie}).


{title:References}

{phang}Blau, F.D., L.M. Kahn (1996). Wage Structure and Gender Earnings Differentials: an International Comparison. Economica 63: S29-S62.{p_end}
{phang}Blinder, A.S. (1973). Wage Discrimination: Reduced Form and Structural Estimates. The Journal of Human Resources 8: 436-455.{p_end}
{phang}DiNardo, J.E., N. Fortin, T. Lemieux (1996). Labour Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach. Econometrica 64: 1001-1046.{p_end}
{phang}Fairlie, R.W. (2005). An extension of the Blinder-Oaxaca decomposition technique to logit and probit models. Journal of Economic and Social Measurement 30: 305-316.{p_end}
{phang}Juhn, C., K.M. Murphy, B. Pierce (1991). Accounting for the Slowdown in Black-White Wage Convergence. Pp. 107-143 in: Workers and Their Wages, ed. by Marvin Kosters, Washington, DC: AEI Press.{p_end}
{phang}Juhn, C., K.M. Murphy, B. Pierce (1993). Wage Inequality and the Rise in Returns to Skill. Journal of Political Economy 101: 410-442.{p_end}
{phang}Machado, J.A.F., J. Mata (2005). Counterfactual decomposition of changes in wage distributions using quantile regression. Journal of Applied Econometrics 20: 445-465.{p_end}
{phang}Oaxaca, R. (1973). Male-Female Wage Differentials in Urban Labor Markets.  International Economic Review 14: 693-709.{p_end}
{phang}Smith, J.P., F.R. Welch (1989). Black Economic Progress After Myrdal. Journal of Economic Literature 27: 519-564.{p_end}


{title:Package list source file}

{pstd} {view wagegap.pkl, adopath asis:wagegap.pkl}


{title:Assembled by}

{pstd} Ben Jann, ETH Zurich, jann@soz.gess.ethz.ch


{title:Also see}

{psee} Online:  {helpb ado}, {helpb adoupdate}, {helpb ssc},
{help sj}, {help stb}; {helpb adolist} (if installed)