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Autor:innen: 
Erscheinungsjahr: 
2005
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 1886
Verlag: 
Institute for the Study of Labor (IZA), Bonn
Zusammenfassung: 
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.
Schlagwörter: 
decomposition
fixed effects
Monte Carlo study
JEL: 
C1
C33
Dokumentart: 
Working Paper

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