Empirical likelihood inference for Oaxaca–Blinder decomposition

This paper proposes an empirical likelihood inference method for the Oaxaca–Blinder decompositions. In contrast to conventional Wald statistic using delta method, our approach circumvents linearization errors and estimation of variance terms. Furthermore, shape resulting confidence set is determined flexibly by data. Simulation results illustrate usefulness proposed method. • Empirical Our estimation. Numerical examples