Almost universally, the decomposition is used to compare the outcomes between two discrete groups, e.g., black and white. In many applications, however, groups are not readily divided into discrete bins. The purpose of this paper is to extend the Oaxaca decomposition to examine differences...

This article uses a nonparametric model of earnings to measure the returns to education. Under very general smoothness conditions, a nonparametric estimator reveals the true shape of the earnings profiles up to random sampling error. Thus, the nonparametric model should provide better...

This article uses a nonparametric model of earnings to measure the returns to education. Under very general smoothness conditions, a nonparametric estimator reveals the true shape of the earnings profiles up to random sampling error. Thus, the nonparametric model should provide better...

The staff at an antitrust agency can focus on either coordinated interaction (collusion) or unilateral effects theories when investigating a proposed merger. This paper statistically models whether the choice of economic theory materially affects the Federal Trade Commission's (FTC) enforcement...

This article estimates a nonparametric model of earnings to examine the black/white wage gap. This article extends the Oaxaca decomposition and adjusted wage ratios to a nonlinear form, to allow the use of this nonparametric approach. It finds that the results obtained nonparametrically are very...

The purpose of this paper is to provide an introduction to AIDS-based demand systems (i.e., those based on Deaton and Muellbauer's Almost Ideal Demand System). We discuss derivation of the AIDS model from its microeconomic foundations, clearly state the assumptions underlying AIDS, and provide a...