reference option Oaxaca decomposition

[Tahani salem]

Hi
I am interesting to use my own reference model. so, I tried to use the reference option with Oaxaca decomposition.before I start I did quick check as follow: I used group indicator in the stored model. thus, I expect to find similar result with pooled option. unfortunately, the result was not equal. and I got a notice :

(_IQualifica_2 _IQualifica_3 _IQualifica_4 _IQualifica_5 _IQualifica_6 _IQualifica_7 _IQualifica_8 _IQualifi
> ca_9 _IQualifica_10 _IQualifica_11 _IQualifica_12 _IQualifica_13 _IQualifica_14 _IQualifica_15 _IQualifica
> _16 _Icolour1_1 _Icolour1_2 _Icolour1_4 _Icolour1_5 _Icolour1_6 _Icolour1_7 _ISIZE_1 _ISIZE_2 _ISIZE_3 _IS
> IZE_4 _Iregions21_1 _Iregions21_3 _Iregions21_4 _Iregions21_5 _Iregions21_6 _Iregions21_7 _IActivitie_1 _I
> Activitie_2 _IActivitie_4 _IActivitie_5 _IActivitie_6 _IActivitie_7 _IActivitie_8 _IActivitie_9 _IActiviti
> e_10 _IActivitie_11 _Ioccupatio_1 _Ioccupatio_2 _Ioccupatio_3 _Ioccupatio_4 _Ioccupatio_5 _Ioccupatio_6 _I
> occupatio_7 _Ioccupatio_8 missing in reference model; assumed zero)

kindly, can somebody guide me how can I prefer this option correctly

[FernandoRios]

Hi Tahani,
Could you post the exact code you are using to implement the decomposition you have in mind? That way will be easier to see where the error is.
Fernando

[Tahani salem]

Thanks for your response.
reg dependent (varlist) i.independent1(varlist) i.independent2.........
est sto reg1
xi: Oaxaca dependent (varlist) independent( varlist) , by(group) relax noisily ref(reg1)

[FernandoRios]

Hi Tahini,
First, i really meant for you to provide the actual command you used, not an example as you just typed.
Nevertheless, i see where the problem is.
1. oaxaca does not work with factor notation yet. (I tried to make those changes myself but failed).
So, when you run reference regression, you do not use the old methodology (using xi: ), but estimate it with modern factor notation. That is why oaxaca says it couldnt find those coefficients, because they are stored with different names.
2. when using pooled option in oaxaca, you need to add the group variable in the pooled regression model.
HTH
Fernando

[Tahani salem]

Dear,
1/ Oaxaca decomposition it does work with factor variable and I generated data, and you can choose the base category.
2/ it is clear for me that pooled option use indicator at the pooled model.

Thanks for your time