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Question: Hello, I have those two formulas of Oaxaca decompo...

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Hello,

I have those two formulas of Oaxaca decomposition for males and females for Salary, Working Hours, Educational Level, Years of working experience, training program length, gender, Nationality (3 nationalities) variables.

Rm= B0 + B1 Salary + B2 Working hours + B3 Education + B4 Working experience + B5 Training period + B6nationality

RF= B0 + B1 Salary + B2 Working hours + B3 Education + B4 Working experience + B5 Training period + B6nationality

How can I decompose them now using subtraction?

Explanation / Answer

First you should calculate (predict) the values for RM and RF and then find their difference and this value is the decomposed value that is required.

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