The delta method is used to estimate asymptotic variances for components of Oaxaca/Blinder style wage decompositions obtained from the semi-log regression models. Application of the method is illustrated with estimates of racial discrimination from the March 1988 CPS. Although developed in the context of estimating labor market discrimination, the variance and standard error formulas readily generalize to other contexts that use decomposition methods.
ASJC Scopus subject areas
- General Social Sciences