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Mean and quantile regression Oaxaca-Blinder decompositions with an application to caste discrimination

Author

Listed:
  • Gabriel Montes-Rojas

    (Universitat Autònoma de Barcelona
    City University London)

  • Lucas Siga

    (New York University-Abu Dhabi)

  • Ram Mainali

    (Ministry of Finance)

Abstract

This paper extends the Oaxaca-Blinder decomposition method to the quantile regression random-coefficients framework. Mean-based decompositions are obtained as the integration of the quantile regression decomposition process. This method allows identifying if the observed differences between two groups differ across quantiles, and if so, what is the contribution to the mean-based Oaxaca-Blinder decomposition. The proposed methodology is applied to the analysis of caste discrimination in Nepal. The results indicate that much of the discrimination occurs at the lowest quantiles, which implies that disadvantaged groups are the ones who suffer the most caste discrimination.

Suggested Citation

  • Gabriel Montes-Rojas & Lucas Siga & Ram Mainali, 2017. "Mean and quantile regression Oaxaca-Blinder decompositions with an application to caste discrimination," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(3), pages 245-255, September.
    • Handle: RePEc:kap:jecinq:v:15:y:2017:i:3:d:10.1007_s10888-017-9355-9
    DOI: 10.1007/s10888-017-9355-9
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    5. Chantreuil, Frédéric & Fourrey, Kévin & Lebon, Isabelle & Rebiere, Therese, 2020. "Decomposing US Income Inequality à La Shapley: Race Matters, but Gender Too," IZA Discussion Papers 12950, Institute of Labor Economics (IZA).
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    7. Songsermsawas, Tisorn & Kafle, Kashi & Winters, Paul, 2023. "Decomposing the impacts of an agricultural value chain development project by ethnicity and gender in Nepal," World Development, Elsevier, vol. 168(C).
    8. Rahut, Dil Bahadur & Aryal, Jeetendra Prakash & Chhay, Panharoth & Sonobe, Tetsushi, 2022. "Ethnicity/caste-based social differentiation and the consumption of clean cooking energy in Nepal: An exploration using panel data," Energy Economics, Elsevier, vol. 112(C).
    9. Federico Favata & Gabriel Rojas Montes & Martín Trombetta & Javier Alejo, 2021. "Conditional and unconditional quantile regressions," Asociación Argentina de Economía Política: Working Papers 4466, Asociación Argentina de Economía Política.
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