Arbeitspapier

Additive decompositions with interaction effects

This paper proposes a comprehensive, path-independent decomposition formula of changes into ceteris paribus effects and interaction effects. The formula implies a reassessment of sequential decomposition methods that are widely used in the literature and that are restrictive in how they treat interaction effects. If counterfactual outcomes are correctly specified, it may also be viewed as a description of certain aspects of causality in the situation where more than one causal influence is present.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 6730

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Discrimination
Mathematical Methods
Personal Income, Wealth, and Their Distributions
Subject
ceteris paribus effects
interaction effects
Oaxaca-Blinder decomposition
Dekompositionsverfahren
Theorie

Event
Geistige Schöpfung
(who)
Biewen, Martin
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2012

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Biewen, Martin
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2012

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