Difference between Oaxaca and decompose function in STATA

[Hyunmin Jung]

Can anyone help me this stuff?

[eric_a_booth]

-oaxaca- and -decompose- are both from SSC and authored by Ben Jann. -oaxaca- is a more recent package which includes better documentation, the same functionality of -decompose- but with the standard errors added for the contributions. A good place to start in understanding is by comparing the explanation of the -decompose- output from:
http://siteresources.worldbank.org/I...EquityCh12.pdf
to the output and functionality of -oaxaca- explained here:
http://www.stata-journal.com/sjpdf.h...iclenum=st0151


You can use the example code in the help files to produce the same estimates, though you have to calculate some of the components provided in the -decompose- output yourself if/when you use -oaxaca- (maybe some of those calculations are available via options, I haven't checked closely)
e.g.

ssc install decompose, replace
ssc install oaxaca, replace
webuse nlswork, clear
decompose ln_wage collgrad tenure if inrange(race, 1, 2), by(race)  estimates
oaxaca ln_wage collgrad tenure if inrange(race, 1, 2), by(race) detail pooled