Hello,

I am fairly new to Stata but have to analyze the Blinder-Oaxaca decomposition. I have been reading the documentation and various sources on the Internet but unfortunately I quickly felt lost. I also found this resource (https://www.stata-journal.com/sjpdf....iclenum=st0151) but was not yet able to apply it to my research question.

In short, I want to explain the difference in the means of the dependent variable HAPPINESS between two pairs of groups {(2010, 2011), (2011, 2012)}, by investigating the effect of four independent variables on this dependent variable.

Dependent variable:
- HAPPINESS: ordinal variable with four levels (very unhappy, unhappy, happy, very happy)

Independent variables:
1. GENDER: nominal variable (1: male, 2: female)
2. AGE: scale from 0 to 100
3. EDUCATION: highest level of education as ordinal variable with three levels (low, middle, high)
4. EMPLOYED: boolean variable (1: is employed, 0: not employed)

Is there anyone who could give me some pointers to help me on the right track, such that I can run the analyses in Stata and interpret the results?

Sincerely,
Anthon