I am using Oaxaca decomposition for my graduation project, where the subject is wage differences between gender, with some focus on difference between the public and private sectors. I first applied the decomposition method on wages in general to obtain the gender wage gap between genders. Later on, I have applied the threefold decomposition method for hourly wages in both public and private sectors to obtain a wage gap there. However, as can be observed in table below, in few of the years the "difference" and the "Interaction" has high p-values. What does this high value mean? Can I still make inferences about the gap? I can't find any sources that would discuss the p-values or their significance to the decomposition.
Public Sector | ||||||||
Variable | 2002 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | 2016 |
Men | 2.12711*** (0.000) |
2.127855*** (0.000) |
2.28916*** (0.000) |
2.326609*** (0.000) |
2.372711*** (0.000) |
2.389001*** (0.000) |
2.432239*** (0.000) |
2.41235*** (0.000) |
Women | 2.09901*** (0.000) |
2.194716*** (0.000) |
2.268984*** (0.000) |
2.286633*** (0.000) |
2.299852*** (0.000) |
2.352422*** (0.000) |
2.38888*** (0.000) |
2.38355*** (0.000) |
Difference | 0.0281001 (0.284) |
0.023138 (0.334) |
0.020176 (0.491) |
0.0399769* (0.099) |
0.0728577*** (0.003) |
0.0365788 (0.162) |
0.0433593* (0.101) |
0.0287993 (0.368) |
endowments | -0.0390629** (0.047) |
-0.0267182* (0.091) |
-0.0492973** (0.018) |
-0.0390105** (0.023) |
-0.0403396** (0.019) |
-0.0499241 *** (0.009) |
-0.0683397*** (0.000) |
-0.0665778*** (0.003) |
Coefficients | 0.0749937*** (0.003) |
0.0551021** (0.029) |
0.0830066*** (0.007) |
0.06765505*** (0.006) |
0.0802848*** (0.000) |
0.0840823*** (0.000) |
0.1038778*** (0.000) |
0.0852044*** (0.003) |
Interaction | -0.0078307 (0.670) |
-0.0052451 (0.774) |
-0.0135333 (0.554) |
0.0113369 (0.527) |
0.0329124** (0.021) |
0.0024205 (0.888) |
0.0078212 (0.646) |
0.0101728 (0.597) |
Explained | -0.0379897** (0.025) |
-0.0302732* (0.054) |
-0.0611286*** (0.000) |
-0.0372746** (0.019) |
-0.0188726 (0.241) |
-0.0442742** (0.013) |
-0.0646111*** (0.000) |
-0.0712211*** (0.001) |
Unexplained | 0.0660897*** (0.003) |
0.053412** (0.016) |
0.0813046*** (0.003) |
0.0772514*** (0.000) |
0.0917303*** (0.000) |
0.080853*** (0.000) |
0.1079705*** (0.000) |
0.1000204*** (0.000) |
Number of obs | 1565 | 1458 | 1316 | 1609 | 1559 | 1386 | 1027 | 706 |
0 Response to Interpreting Oaxaca Decomposition
Post a Comment