@techreport{Heitmuller2005note,
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.},
address = {Bonn},
author = {Axel Heitm\"{u}ller},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C1; C33; 330; decomposition; fixed effects; Monte Carlo study},
language = {eng},
number = {1886},
publisher = {IZA},
title = {A note on decompositions in fixed effects models in the presence of time-invariant characteristics},
type = {IZA Discussion Papers},
url = {http://hdl.handle.net/10419/33273},
year = {2005}
}
