Hello,

I have assessed online materials available for the decomposition of both linear and non-linear models but am not quite understanding the correct code to use in the current context.

I have obtained results for the average predicted probabilities (of being employed (emp = 1 if employed, 0= otherwise)) of non-disabled (DISTYPE = 4) and work-limited disabled (DISTYPE =1) via:

Code:
 probit emp DISTYPE SEX ETH AGES1 URESMC1 HDPCH191 IND1 MARSTA1 HIQUAL81 REGWKR1 SKSBN911 FTPTWK1, nolog 

margins, at(DISTYPE=(1 4)) vsquish

I believe the following format is adequate:
Code:
 fairlie depvar indepvars [if] [in] [weight], by(groupvar) [ options ]
But I am struggling how to integrate these results (the average predicted probabilities for both groups) to decompose the differences in observed characteristics and the 'unexplained' gap, for male and female?

Any help would be greatly appreciated.