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IZA Discussion Paper No. 1795
October 2005
Blinder-Oaxaca Decomposition for Tobit Models
Thomas K. Bauer, Mathias Sinning

published in: Applied Economics , 2010, 42 (12), 1569-1575

In this paper, a decomposition method for Tobit-models is derived, which allows the differences in a censored outcome variable between two groups to be decomposed into a part that is explained by differences in observed characteristics and a part attributable to differences in the estimated coefficients. The method is applied to a decomposition of the gender wage gap using German data.

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