September 2003

IZA DP No. 877: Decomposing Differences in the First Moment

published in: Economics Letters, 2004, 82 (2), 275-280

We propose a simple methodology for decomposing differences in the first moment into characteristics and coefficients effects. This methodology provides a way to apply the Blinder-Oaxaca decomposition to a non-linear function for both aggregate and detailed decompositions.