A note on variance estimation for the Oaxaca estimator of average treatment effects

We derive the limiting distribution of the Oaxaca estimator of average treatment effects studied by Kline (2011). A consistent estimator of the asymptotic variance is proposed that makes use of standard regression routines. It is shown that ignoring uncertainty in group means will tend to lead to an overstatement of the asymptotic standard errors. Monte Carlo experiments examine the finite sample performance of competing approaches to inference.

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Year of publication:	2014
Authors:	Kline, Patrick
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 3, p. 428-431
Publisher:	Elsevier
Subject:	Treatment effects \| Oaxaca decomposition \| Robust variance estimation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010743690