Hello Everyone,
I am working on a thesis that uses a multivariate linear regression to evaluate the racial wealth gap between four groups: whites, blacks, Asians, and Hispanics. If it helps, I am using SPSS complex samples, general linear models, and a large nationally representative survey called the Survey of Income and Program Participation (SIPP).
I have already run four separate regressions for each subgroup. Now I am trying to use something called a "Blinder-Oaxaca" decomposition described here. Basically, it breaks the regression into two components: the explained and the unexplained, and allows me to calculate how much each independent variable contributes to the explained percent. It has been used in a number of publications seen below:
Can anyone help give me some practical, less equation heavy, advice on how to use this method? Or point me towards a guide/source that could? I'm not sure if I could simply use the results of my four regressions and calculate the decomposition by hand, or if I need to somehow plug the intercepts, coefficients, and means back into a program. I'm also generally confused on how to calculate it.
Thank you, and I really appreciate any help!
~Colin
I am working on a thesis that uses a multivariate linear regression to evaluate the racial wealth gap between four groups: whites, blacks, Asians, and Hispanics. If it helps, I am using SPSS complex samples, general linear models, and a large nationally representative survey called the Survey of Income and Program Participation (SIPP).
I have already run four separate regressions for each subgroup. Now I am trying to use something called a "Blinder-Oaxaca" decomposition described here. Basically, it breaks the regression into two components: the explained and the unexplained, and allows me to calculate how much each independent variable contributes to the explained percent. It has been used in a number of publications seen below:
- Oaxaca, Ronald. 1973. "Male-Female Wage Differentials in Urban Labor Markets." International Economic Review 14(3): 693-709.
- Oliver, Melvin L. and Thomas M. Shapiro. 1995. Black Wealth/White Wealth: A New Perspective on Racial Inequality. New York: Routledge.
- Campbell, Lori Ann and Robert L. Kaufman. 2006. “Racial Differences in Household Wealth: Beyond Black and White.” Research in Social Stratification and Mobility 24(2): 131-152.
Can anyone help give me some practical, less equation heavy, advice on how to use this method? Or point me towards a guide/source that could? I'm not sure if I could simply use the results of my four regressions and calculate the decomposition by hand, or if I need to somehow plug the intercepts, coefficients, and means back into a program. I'm also generally confused on how to calculate it.
Thank you, and I really appreciate any help!
~Colin