Hello, I have those two formulas of Oaxaca decomposition for males and females f

Question

Hello,

I have those two formulas of Oaxaca decomposition for males and females for Salary, Working Hours, Educational Level, Years of working experience, training program length, gender, Nationality (3 nationalities) variables.

Rm= B0 + B1 Salary + B2 Working hours + B3 Education + B4 Working experience + B5 Training period + B6 nationality

RF= B0 + B1 Salary + B2 Working hours + B3 Education + B4 Working experience + B5 Training period + B6 nationality

* What is the next step in the decomposition and what is the theoritical explanation for the model based on those variables?

Explanation / Answer

The next step is to analyse the data using the above linear models and find out the effects of Salary, Working hours, Education, Working experience, Training period, and nationality on male and female salary respectively.

The theoretical explanation for the model based on those variables is that the salary of male and female are depends on the explanatory variables Salary, Working hours, Education, Working experience, Training period, and nationality on male and female salary respectively.

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