Blinder-Oaxaca Decomposition with group specific variables

[Melissa Spencer]

I would like to run a Blinder-Oaxaca Decomposition on black-white differences. I have panel data where all variables are race-specific group averages.

i.e. I am currently running two regressions.

xtreg white_dependentvar white_indepdentvars i.timevar, fe

xtreg black_dependentvar black_indepdentvars i.timevar, fe


I want to do an Blinder-Oaxaca decomposition of the differences. Is this possible and if so is there an existing Stata command for it?

It does not seem that the oaxaca command will work, since I have different variables for the two groups.

(Note that I do not have individual level data, so I cannot decompose the group averages to get data in a format that works with the oaxaca command).

[Melissa Spencer]

Update: I figured out the obvious solution - rename the variables and reshape the data such that it's possible to run the oaxaca command. However, it's not clear if the decomposition is appropriate for fixed effects models anyways.