A Blinder--Oaxaca decomposition for double-hurdle models with an application to migrants' remittance behaviour
This article extends the Blinder--Oaxaca decomposition to double-hurdle (DH) models. The proposed methodology focuses on a generalized non-Gaussian DH specification with correlated errors and allows decomposing the gaps in participation probabilities and outcome levels for a wide range of nested specifications. The decomposition technique is applied to analyse differences in remittance behaviour of temporary and permanent migrants.