A note on variance estimation for the Oaxaca estimator of average treatment effects

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 122
Issue: 3
Pages: 428-431

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We derive the limiting distribution of the Oaxaca estimator of average treatment effects studied by Kline (2011). A consistent estimator of the asymptotic variance is proposed that makes use of standard regression routines. It is shown that ignoring uncertainty in group means will tend to lead to an overstatement of the asymptotic standard errors. Monte Carlo experiments examine the finite sample performance of competing approaches to inference.

Technical Details

RePEc Handle
repec:eee:ecolet:v:122:y:2014:i:3:p:428-431
Journal Field
General
Author Count
1
Added to Database
2026-01-25