I'm using Jonah Gelbach's program "b1x2" to conduct regression decompositions. I have the help file for the program along with his recent paper ("When Do Covariates Matter..., Journal of Labor Economics 2016) but I still have some questions:
1) What is the exact meaning of the term "___TC"? I think it's the total change in the outcome coefficient between the two groups, but I'm not positive.
2) What does it mean when a covariate, or set of covariates, has a negative value in the decomposition?
Any help with these questions, or references to good articles/web sites, etc. on how to conduct/interpret decomposition results, would be appreciated.
Thanks,
Scott Holupka
1) What is the exact meaning of the term "___TC"? I think it's the total change in the outcome coefficient between the two groups, but I'm not positive.
2) What does it mean when a covariate, or set of covariates, has a negative value in the decomposition?
Any help with these questions, or references to good articles/web sites, etc. on how to conduct/interpret decomposition results, would be appreciated.
Thanks,
Scott Holupka