Consider the following log-wage regression results for women (W) and men (M) where wages are predicted by schooling (S) and age (A). wW = 2.23 + 0.077Sw + 0.017Aw and wM = 2.33 + 0.0745SM + 0.026AM. Sample means for the variables by gender are: women average a logged wage of 3.90, 12.7 years of schooling, and 40.8 years-old; men average a logged wage of 4.53, 14.2 years of schooling, and 43.9 years-old. Decompose the raw difference in average logged wages using the Oaxaca-Blinder
Consider the following log-wage regression results for women (W) and men (M) where wages are predicted by schooling (S) and age (A).
wW = 2.23 + 0.077Sw + 0.017Aw and wM = 2.33 + 0.0745SM + 0.026AM.
Sample means for the variables by gender are: women average a logged wage of 3.90, 12.7 years of schooling, and 40.8 years-old; men average a logged wage of 4.53, 14.2 years of schooling, and 43.9 years-old. Decompose the raw difference in average logged wages using the Oaxaca-Blinder decomposition. Specifically, decompose the raw difference into the portion due to differences in schooling, differences in age, and the portion left unexplained, possibly due to gender discrimination.
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