ddecompose:Detailed Distributional Decomposition
Implements the Oaxaca-Blinder decomposition method and generalizations of it that decompose differences in
distributional statistics beyond the mean. The function
ob_decompose() decomposes differences in the mean outcome
between two groups into one part explained by different
covariates (composition effect) and into another part due to
differences in the way covariates are linked to the outcome
variable (structure effect). The function further divides the
two effects into the contribution of each covariate and allows
for weighted doubly robust decompositions. For distributional
statistics beyond the mean, the function performs the
recentered influence function (RIF) decomposition proposed by
Firpo, Fortin, and Lemieux (2018). The function dfl_decompose()
divides differences in distributional statistics into an
composition effect and a structure effect using inverse
probability weighting as introduced by DiNardo, Fortin, and
Lemieux (1996). The function also allows to sequentially
decompose the composition effect into the contribution of
single covariates. References: Firpo, Sergio, Nicole M. Fortin,
and Thomas Lemieux. (2018) <doi:10.3390/econometrics6020028>.
"Decomposing Wage Distributions Using Recentered Influence
Function Regressions." Fortin, Nicole M., Thomas Lemieux, and
Sergio Firpo. (2011) <doi:10.3386/w16045>. "Decomposition
Methods in Economics." DiNardo, John, Nicole M. Fortin, and
Thomas Lemieux. (1996) <doi:10.2307/2171954>. "Labor Market
Institutions and the Distribution of Wages, 1973-1992: A
Semiparametric Approach." Oaxaca, Ronald. (1973)
<doi:10.2307/2525981>. "Male-Female Wage Differentials in Urban
Labor Markets." Blinder, Alan S. (1973) <doi:10.2307/144855>.
"Wage Discrimination: Reduced Form and Structural Estimates."