Hi,
I am trying to analyse changes in the wage distribution using the oaxaca command in Stata, but have some trouble interpreting results and was wondering whether anyone could help me?
See attached an excerpt from my stata output. Group 1 refers to the year 1994 and group 2 refers to the year 2000. As you can see the difference is negative, which I believe makes sense given that wages were higher in 2000 than they were in 1994. If I understand correctly, the endowment coefficient captures the contribution of a change in endowments in 2000 if the endowments had the same return as in 1994, i.e. wages would have been lower in 2000.
However, what I struggle with is interpreting the contribution of the specific endowment components. Specifically, how would I for instance interpret nonfin? (nonfin is a binary variable equal to 1 if a household has non-financial assets and 0 otherwise)
I would be very grateful for any help or advice!
Thank you.
I am trying to analyse changes in the wage distribution using the oaxaca command in Stata, but have some trouble interpreting results and was wondering whether anyone could help me?
See attached an excerpt from my stata output. Group 1 refers to the year 1994 and group 2 refers to the year 2000. As you can see the difference is negative, which I believe makes sense given that wages were higher in 2000 than they were in 1994. If I understand correctly, the endowment coefficient captures the contribution of a change in endowments in 2000 if the endowments had the same return as in 1994, i.e. wages would have been lower in 2000.
However, what I struggle with is interpreting the contribution of the specific endowment components. Specifically, how would I for instance interpret nonfin? (nonfin is a binary variable equal to 1 if a household has non-financial assets and 0 otherwise)
I would be very grateful for any help or advice!
Thank you.
Comment