@TechReport{iza:izadps:dp1886,
            	author={Heitmueller, Axel},
            	title={A Note on Decompositions in Fixed Effects Models in the Presence of Time-Invariant Characteristics},
            	year={2005},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1886},
            	url={https://www.iza.org/index.php/publications/dp1886},
	abstract={Though theoretically appealing and very popular amongst labour economists, the interpretation of the unexplained part of the Oaxaca (1973) decomposition as discrimination rather than an omitted variable problem in cross-section data has often been criticised. In this note it is shown that this problem extends also to panel data and moreover that in a fixed effects model including time invariant regressors omitted variables are a necessary and deliberate consequence. Monte Carlo simulation is used to show the extent of the bias. Special cases and practical implications are discussed.},
	keywords={decomposition;fixed effects;Monte Carlo study},
            }