São Paulo School of Economics
Institutional Affiliation: São Paulo School of Economics
Information about this author at RePEc
NBER Working Papers and Publications
|June 2010||Decomposition Methods in Economics|
with Nicole Fortin, Thomas Lemieux: w16045
This chapter provides a comprehensive overview of decomposition methods that have been developed since the seminal work of Oaxaca and Blinder in the early 1970s. These methods are used to decompose the difference in a distributional statistic between two groups, or its change over time, into various explanatory factors. While the original work of Oaxaca and Blinder considered the case of the mean, our main focus is on other distributional statistics besides the mean such as quantiles, the Gini coefficient or the variance. We discuss the assumptions required for identifying the different elements of the decomposition, as well as various estimation methods proposed in the literature. We also illustrate how these methods work in practice by discussing existing applications and working through...
Published: “Decomposition Methods in Economics” (with Sergio Firpo and Nicole Fortin), in D. Card and O. Ashenfelter, eds., Handbook of Labor Economics, 4 th Edition, Elsevier North Holland, 2011, pp. 1-102.
|July 2007||Unconditional Quantile Regressions|
with Nicole M. Fortin, Thomas Lemieux: t0339
We propose a new regression method to estimate the impact of explanatory variables on quantiles of the unconditional (marginal) distribution of an outcome variable. The proposed method consists of running a regression of the (recentered) influence function (RIF) of the unconditional quantile on the explanatory variables. The influence function is a widely used tool in robust estimation that can easily be computed for each quantile of interest. We show how standard partial effects, as well as policy effects, can be estimated using our regression approach. We propose three different regression estimators based on a standard OLS regression (RIF-OLS), a logit regression (RIF-Logit), and a nonparametric logit regression (RIF-OLS). We also discuss how our approach can be generalized to other...
Published: Econometrica Volume 77, Issue 3, pages 953–973, May 2009