Create dummy for Blinder-Oaxaca

[Stefano Pagliarani]

Hi everyone,

I have a dataset in which each observation has two indicators of interest, var_A and var_B (which are on the same scale) in addition to other control variables. I would like to run a Blinder-Oaxaca decomposition with those other control variables to explain the observed differences between var_A and var_B. How can I create the dummy variable to run it with oaxaca?

Thank you

[George Ford]

You should have a dummy variable for the groups you wish to compare (e.g., race). Or, are var_A and var_B dummy variables? If so, just use them.

also -ssc install oaxaca- will be useful.