TY  - RPRT
        AU  - Yun, Myeong-Su
        TI  - Normalized Equation and Decomposition Analysis: Computation and Inference
        PY  - 2005/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1822
        UR  - https://www.iza.org/publications/dp1822
        AB  - This paper joins discussions on normalized regression and decomposition equations in devising a simple and general algorithm for obtaining the normalized regression and applying it to the Oaxaca decomposition. This resolves the invariance problem in the detailed Oaxaca decomposition. An algorithm to calculate an asymptotic covariance matrix for estimates in the normalized regression for hypothesis testing is also derived. We extend these algorithms to non-linear equations where the underlying equation is linear and decompose differences in the first moment. 
        KW  - normalized regression
KW  - detailed decomposition
KW  - invariance
KW  - identification
KW  - characteristics effect
KW  - coefficients effect
        ER  -