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Empirical likelihood inference for Oaxaca-Blinder decomposition

Otsu, Taisuke and Tanaka, Shiori (2022) Empirical likelihood inference for Oaxaca-Blinder decomposition. Economics Letters, 219. ISSN 0165-1765

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Identification Number: 10.1016/j.econlet.2022.110812

Abstract

This paper proposes an empirical likelihood inference method for the Oaxaca-Blinder decompositions. In contrast to the conventional Wald statistic using the delta method, our approach circumvents the linearization errors and estimation of the variance terms. Furthermore, the shape of the resulting empirical likelihood confidence set is determined flexibly by data. Simulation results illustrate usefulness of the proposed inference method.

Item Type: Article
Official URL: https://www.sciencedirect.com/journal/economics-le...
Additional Information: © 2022 Elsevier B.V.
Divisions: Economics
Subjects: H Social Sciences > HB Economic Theory
Q Science > QA Mathematics
JEL classification: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C14 - Semiparametric and Nonparametric Methods
Date Deposited: 15 Aug 2022 10:36
Last Modified: 20 Sep 2022 11:03
URI: http://eprints.lse.ac.uk/id/eprint/115982

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