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Oaxaca-Blinder meets Kitagawa: What is the link?
Ronald L Oaxaca1,2,3, Eva Sierminska1,2,3,4,5,6
1Department of Economics, University of Arizona, Tucson, Arizona, United States of America.
Plos One
|May 13, 2025
Summary
This paper clarifies the precise relationship between the Oaxaca-Blinder (OB) method and the Kitagawa method for decomposing outcome differences between populations. It details their distinct frameworks and specific overlap conditions.
Area of Science:
- * Social Sciences
- * Economics
- * Demography
Background:
- * Oaxaca-Blinder (OB) and Kitagawa methods are popular for decomposing outcome differences.
- * Recent literature combines the naming of these two decomposition methods.
- * The exact relationship between the Kitagawa method and OB is not well-detailed.
Purpose of the Study:
- * To precisely define the relationship between the Kitagawa method and the Oaxaca-Blinder (OB) method.
- * To analyze the circumstances under which these two decomposition approaches overlap.
- * To provide a comprehensive citation history of relevant papers.
Main Methods:
- * Comparative analysis of the theoretical frameworks of the Kitagawa and OB decomposition methods.
- * Examination of the mathematical underpinnings to identify overlap conditions.
- * Literature review and citation analysis to trace the historical development and association.
Main Results:
- * The Kitagawa and OB methods, while sharing the objective of decomposing outcome differences, are framed differently.
- * Overlap between the two methods occurs only under specific, limited circumstances.
- * A detailed analysis of their precise relationship and historical context is presented.
Conclusions:
- * The study elucidates the nuanced relationship between the Kitagawa and OB decomposition methods.
- * Understanding their precise connection is crucial for accurate application in social science research.
- * This work addresses a gap in the literature regarding the comparative analysis of these methods.
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