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The Decomposition of Inter-Group Differences in a Logit Model: Extending the Oaxaca-Blinder Approach with an Application to School Enrolment in India

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  • Borooah, Vani
  • Iyer, Sriya

Abstract

This paper suggests a method of decomposing differences in inter-group probabilities from a logit model and shows how it can be related to similar decompositions derived from a Oaxaca-Blinder framework. In so doing, it offers a solution to a problem, embedded within the Oaxaca-Blinder decomposition, relating to the appropriate choice of common coefficient vectors with which to evaluate the different attribute vectors. The decomposition method also shows how pair-wise comparisons of groups might be conducted in the presence of more than two groups, without discarding the information on groups excluded from the comparison. The proposed method is applied to inter-group differences in schooling participation in India and the results are compared with the Oaxaca-Blinder method. The decomposition is applied specifically to inter-group differences in the enrolment of boys at school in India.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:19418
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. David Blackaby & Derek Leslie & Philip Murphy & Nigel O’Leary, 1999. "Unemployment Among Britain’s Ethnic Minorities," Manchester School, University of Manchester, vol. 67(1), pages 1-20, January.
    4. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
    5. repec:bla:scotjp:v:44:y:1997:i:2:p:182-97 is not listed on IDEAS
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    More about this item

    Keywords

    Logit regression; school enrolment; India; decomposition methods;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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