aggregate_terms

The function aggregates decomposition terms and calculates
their covariance matrix based on detailed decomposition results.

Implements the Oaxaca-Blinder decomposition method and generalizations of it that decompose differences in distributional statistics beyond the mean.
The function ob_decompose() decomposes differences in the mean outcome between two groups into one part explained by different covariates (composition effect) and into another part due to differences in the way covariates are linked to the outcome variable (structure effect). The function further divides the two effects into the contribution of each covariate and allows for weighted doubly robust decompositions. For distributional statistics beyond the mean, the function performs the recentered influence function (RIF) decomposition proposed by Firpo, Fortin, and Lemieux (2018).
The function dfl_decompose() divides differences in distributional statistics into an composition effect and a structure effect using inverse probability weighting as introduced by DiNardo, Fortin, and Lemieux (1996). The function also allows to sequentially decompose the composition effect into the contribution of single covariates.
References:
Firpo, Sergio, Nicole M. Fortin, and Thomas Lemieux. (2018) <doi:10.3390/econometrics6020028>. "Decomposing Wage Distributions Using Recentered Influence Function Regressions."
Fortin, Nicole M., Thomas Lemieux, and Sergio Firpo. (2011) <doi:10.3386/w16045>. "Decomposition Methods in Economics."
DiNardo, John, Nicole M. Fortin, and Thomas Lemieux. (1996) <doi:10.2307/2171954>. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach."
Oaxaca, Ronald. (1973) <doi:10.2307/2525981>. "Male-Female Wage Differentials in Urban Labor Markets."
Blinder, Alan S. (1973) <doi:10.2307/144855>. "Wage Discrimination: Reduced Form and Structural Estimates."

Samuel Meier

ddecompose

Detailed Distributional Decomposition

aggregate_terms function

<dl><dt>x</dt>
<dd>an object of class "ob_decompose", usually , a result of a call to [ob_decompose()].</dd>
<dt>aggregate_factors</dt>
<dd>boolean, if `TRUE` (default) terms associated with detailed factor
levels are aggregated to a single term for every factor variable.</dd>
<dt>custom_aggregation</dt>
<dd>list specifying the aggregation of detailed decomposition
terms. The parameter `custom_aggregation` overrides the parameter `aggregate_factors`.
If `NULL` (default), then either all detailed terms or all terms associated with
a single variable are returned.</dd>
<dt>reweighting</dt>
<dd>boolean, if `TRUE` the decompostion in `object` contains reweighting
(i.e. specification and reweighting error)</dd></dl>

Arguments

Aggregate decomposition terms — aggregate_terms

<dl>

<dt>x</dt>
<dd>an object of class "ob_decompose", usually , a result of a call to [ob_decompose()].</dd>


<dt>aggregate_factors</dt>
<dd>boolean, if `TRUE` (default) terms associated with detailed factor
levels are aggregated to a single term for every factor variable.</dd>


<dt>custom_aggregation</dt>
<dd>list specifying the aggregation of detailed decomposition
terms. The parameter `custom_aggregation` overrides the parameter `aggregate_factors`.
If `NULL` (default), then either all detailed terms or all terms associated with
a single variable are returned.</dd>


<dt>reweighting</dt>
<dd>boolean, if `TRUE` the decompostion in `object` contains reweighting
(i.e. specification and reweighting error)</dd>

</dl>

aggregate_terms: Aggregate decomposition terms

Description

Usage

Value

Arguments