IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3971.html
   My bibliography  Save this paper

Multivariate Decomposition for Hazard Rate Models

Author

Listed:
  • Powers, Daniel A.

    (University of Texas at Austin)

  • Yun, Myeong-Su

    (Inha University)

Abstract

We develop a regression decomposition technique for hazard rate models, where the difference in observed rates is decomposed into components attributable to group differences in characteristics and group differences in effects. The baseline hazard is specified using a piecewise constant exponential model, which leads to convenient estimation based on a Poisson regression model fit to person-period, or split-episode data. This specification allows for a flexible representation of the baseline hazard and provides a straightforward way to introduce time-varying covariates and time-varying effects. We provide computational details underlying the method and apply the technique to the decomposition of the black-white difference in first premarital birth rates into components reflecting characteristics and effect contributions of several predictors, as well as the effect contribution attributable to race differences in the baseline hazard.

Suggested Citation

  • Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3971
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3971.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    2. Mathia Sinning & Markus Hahn & Thomas K. Bauer, 2008. "The Blinder–Oaxaca decomposition for nonlinear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 480-492, December.
    3. William E. Even & David A. Macpherson, 1993. "The Decline of Private-Sector Unionism and the Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 279-296.
    4. Axel Heitmueller, 2004. "Job Mobility In Britain: Are The Scots Different? Evidence From The Bhps," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 329-358, August.
    5. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    7. Murray Aitkin & David Clayton, 1980. "The Fitting of Exponential, Weibull and Extreme Value Distributions to Complex Censored Survival Data Using Glim," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 29(2), pages 156-163, June.
    8. Thomas Bauer & Silja Göhlmann & Mathias Sinning, 2007. "Gender differences in smoking behavior," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 895-909, September.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    10. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    11. Borooah, Vani & Iyer, Sriya, 2005. "The Decomposition of Inter-Group Differences in a Logit Model: Extending the Oaxaca-Blinder Approach with an Application to School Enrolment in India," MPRA Paper 19418, University Library of Munich, Germany.
    12. Tamás Bartus, 2006. "Marginal effects and extending the Blinder–Oaxaca decomposition for nonlinear models," United Kingdom Stata Users' Group Meetings 2006 05, Stata Users Group.
    13. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
    14. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    15. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samuel H. Preston & Yana C. Vierboom & Mikko Myrskylä, 2023. "Socio-behavioral factors contributing to recent mortality trends in the United States," MPIDR Working Papers WP-2023-019, Max Planck Institute for Demographic Research, Rostock, Germany.
    2. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso & Annunziata Felice, 2022. "The innovation gender gap in transition countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 493-516, July.
    3. García, A., 2016. "Oaxaca-Blinder Type Counterfactual Decomposition Methods for Duration Outcomes," Documentos de Trabajo 14186, Universidad del Rosario.
    4. YAMAGUCHI Kazuo, 2014. "Decomposition of Gender or Racial Inequality with Endogenous Intervening Covariates: An extension of the DiNardo-Fortin-Lemieux method," Discussion papers 14061, Research Institute of Economy, Trade and Industry (RIETI).
    5. Oertel, Simon, 2014. "Density imprints and organisations’ survival chances: a question of organisational ancestors," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(1), pages 81-105.
    6. Daniel A. Powers & Hirotoshi Yoshioka & Myeong-Su Yun, 2011. "mvdcmp: Multivariate decomposition for nonlinear response models," Stata Journal, StataCorp LP, vol. 11(4), pages 556-576, December.
    7. Dieudonne Ndaruhuye Muhoza & Pierre Claver Rutayisire & Aline Umubyeyi, 2016. "Measuring the success of family planning initiatives in Rwanda: a multivariate decomposition analysis," Journal of Population Research, Springer, vol. 33(4), pages 361-377, December.
    8. Woojin Chung & Monica Das Gupta, 2007. "The Decline of Son Preference in South Korea: The Roles of Development and Public Policy," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 757-783, December.
    9. Bowblis, John R. & Yun, Myeong-Su, 2010. "Racial and Ethnic Disparities in the Use of Drug Therapy," IZA Discussion Papers 4853, Institute of Labor Economics (IZA).
    10. Rocha, Vera & Carneiro, Anabela & Varum, Celeste, 2015. "What explains the survival gap of pushed and pulled corporate spin-offs?," Economics Letters, Elsevier, vol. 126(C), pages 127-130.
    11. Salas-Ortiz, A., 2021. "Explaining the ethnic gaps in COVID-19 outcomes in Mexico," Health, Econometrics and Data Group (HEDG) Working Papers 21/20, HEDG, c/o Department of Economics, University of York.
    12. Goldenstein, Jan & Hunoldt, Michael & Oertel, Simon, 2019. "How optimal distinctiveness affects new ventures' failure risk: A contingency perspective," Journal of Business Venturing, Elsevier, vol. 34(3), pages 477-495.
    13. Weihua An & Adam N. Glynn, 2021. "Treatment Effect Deviation as an Alternative to Blinder–Oaxaca Decomposition for Studying Social Inequality," Sociological Methods & Research, , vol. 50(3), pages 1006-1033, August.
    14. Akushevich, I. & Yashkin, A. & Kovtun, M. & Stallard, E. & Yashin, A.I. & Kravchenko, J., 2023. "Decomposition of disparities in life expectancy with applications to administrative health claims and registry data," Theoretical Population Biology, Elsevier, vol. 153(C), pages 50-68.
    15. Bátiz-Zuk Enrique & González-Holden Alexa, 2023. "Identifying Gender Disparities on the Time to Repay Microfinance Group Loans: Evidence from Mexico," Working Papers 2023-07, Banco de México.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boris Kaiser, 2016. "Decomposing differences in arithmetic means: a doubly robust estimation approach," Empirical Economics, Springer, vol. 50(3), pages 873-899, May.
    2. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    3. Stewart Williams, Jennifer Anne, 2009. "Using non-linear decomposition to explain the discriminatory effects of male-female differentials in access to care: A cardiac rehabilitation case study," Social Science & Medicine, Elsevier, vol. 69(7), pages 1072-1079, October.
    4. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    5. Wolff, François-Charles, 2012. "Decomposition of non-linear models using simulated residuals," Economics Letters, Elsevier, vol. 116(3), pages 346-348.
    6. Ronald Bachmann & Mathias Sinning, 2016. "Decomposing the Ins and Outs of Cyclical Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 853-876, December.
    7. Yun Liang & John Gibson, 2017. "Location or Hukou: What Most Limits Fertility of Urban Women in China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 527-540, September.
    8. Fossen, Frank M., 2019. "Entrepreneurship over the Business Cycle in the United States: A Decomposition," IZA Discussion Papers 12499, Institute of Labor Economics (IZA).
    9. Carlos Gradin, 2009. "Why is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1426-1452.
    10. Carlos Grad󸀍, 2012. "Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3793-3804, October.
    11. Meghaan R. Lurtz & Derek T. Tharp & Katherine S. Mielitz & Michael Kitces & D. Allen Ammerman, 2020. "Decomposing the Gender Divorce Gap Among Personal Financial Planners," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 19-36, March.
    12. Owen O’Donnell & Eddy van Doorslaer & Adam Wagstaff, 2012. "Decomposition of Inequalities in Health and Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 17, Edward Elgar Publishing.
    13. Gomes, Magno Rogério & Souza, Solange de Cássia Inforzato de & Mantovani, Gabriela Gomes & Paiva, Vanessa Fortunato de, 2020. "Wage gap decomposition models: A methodological contribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 39(2), March.
    14. Daniel A. Powers & Hirotoshi Yoshioka & Myeong-Su Yun, 2011. "mvdcmp: Multivariate decomposition for nonlinear response models," Stata Journal, StataCorp LP, vol. 11(4), pages 556-576, December.
    15. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    16. ChangHwan Kim, 2010. "Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method," Sociological Methods & Research, , vol. 38(4), pages 619-651, May.
    17. Frank M. Fossen, 2021. "Self-employment over the business cycle in the USA: a decomposition," Small Business Economics, Springer, vol. 57(4), pages 1837-1855, December.
    18. Ian Watson, 2010. "Decomposing the Gender Pay Gap in the Australian Managerial Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(1), pages 49-79.
    19. Niels-Hugo Blunch, 2015. "Bound to lose, bound to win? The financial crisis and the informal-formal sector earnings gap in Serbia," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-34, December.
    20. Font, Sarah A. & Berger, Lawrence M. & Slack, Kristen S., 2012. "Examining racial disproportionality in child protective services case decisions," Children and Youth Services Review, Elsevier, vol. 34(11), pages 2188-2200.

    More about this item

    Keywords

    decomposition; piecewise constant exponential model; Poisson regression; hazard rates;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.