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To cite this article: T. A. Park & L. Lohr (2010): A OaxacaBlinder decomposition for count data models, Applied Economics
Letters, 17:5, 451-455
To link to this article: http://dx.doi.org/10.1080/13504850801964307
A OaxacaBlinder decomposition
for count data models
T. A. Park* and L. Lohr
I. Introduction
Farms operated by women represent a growing
segment of US farms, accounting for 9% of US
farms in 1997, an increase of 58% from 1978 (Korb,
2005). Female farmers make up an even larger share
of organic farmers at 21% of US organic farms.
Recognizing that more women are choosing to
manage their own farms, federal and state agriculture
departments along with university extension are
targeting women farmers with on-farm management
and technical training through extension, research
and education programmes.
Our methodological innovation is an extension of
the BlinderOaxaca (BO) decomposition to a count
data model (Blinder, 1973; Oaxaca, 1973). The
technique decomposes observed differences in the
use of crop disease and nematode management
strategies across male and female farmers into two
components. The first component, called the characteristic effect, measures how observable characteristics or endowments across the two groups
influence the management techniques. This
451
452
strategy were classified as nonadopters. A count
data regression model of the crop disease management portfolio estimated separately for male (M) and
female (F) farmers was:
CrpDisManig expg g0 Oig g0 Rig "ig ,
g M, F
lnCrpDisManiM
lnCrpDisManiF
M M XF M
X
F F
XF M X
2
impact of each explanatory variable. The decomposition for each of the k variables is
"
#
X
K
M M
X
lnCrpDisManiM
j
WX
F M
lnCrpDisManiF
X
j1
"
#
K
X j
F M
X
W
F F
X
j1
3
The weights for the K explanatory variables in the
model WjX and Wj were defined as:
WjX
j
Xj j M
Wj M F
4
XM F M
The
weights
were
calculated
using
the
estimated coefficients from the count data model in
Equation 4 evaluated at the mean values of the
explanatory variables. The method requires only that
the dependent variable is specified as a linear
combination of the explanatory variables and that
the function is once differentiable.
453
Description
CrpDisMan
SoleProp
PctVeg
OrgAcre
PartTime
YrsOrg
InfoSrc
ManProb
West
NorthCent
South
Northeast
Observations
Females
Males
Question number
3.34 (1.46)
2.84 (1.60)
5.5
0.06
0.17
0.57
0.20
0.72
0.38 (0.42)
0.07
0.35
0.44
0.14
0.72
0.25 (0.38)
8.2
3.1, 3.2 8.6a
82.30 (516.87)
142.84 (296.75)
8.6
0.62
11.26 (9.36)
0.65
10.36 (8.41)
8.3
8.10
14.89 (7.17)
13.08 (7.56)
2.2a
0.33
0.37
2.2a
0.41
0.18
0.08
0.33
138
0.32
0.39
0.07
0.22
611
8.12
8.12
8.12
8.12
454
Table 2. Decomposition analysis of crop disease management strategies male vs. females
Characteristics effect
Coefficients effect
Variable
Estimate
Share
Estimate
Share
Constant
SoleProp
PctVeg
OrgAcre
PartTime
YrsOrg
InfoSrc
ManProb
West
NorthCent
Northeast
SUM
0.0002 (0.366)
0.117* (5.625)
0.004 (0.217)
0.006 (1.445)
0.010 (1.633)
0.057* (3.769)
0.011* (2.054)
0.041* (1.939)
0.138* (2.906)
0.006 (0.268)
0.255
0.00
22.8
0.7
1.2
2.0
11.2
2.2
8.1
27.0
1.2
49.9
0.203* (0.354)
0.049 (0.163)
0.276* (2.138)
0.037 (1.367)
0.008 (0.075)
0.076 (0.442)
0.339 (1.168)
0.129 (1.472)
0.048 (0.296)
0.003 (0.033)
0.027 (0.352)
0.256
39.6
9.6
53.9
7.3
1.6
14.8
61.4
25.2
9.3
0.5
5.3
50.1
Notes: *Share for each explanatory variable calculated by dividing the estimate by the summed values of all characteristics
and coefficients effect. The characteristics effect share for information sources (in absolute values) is calculated as
0.057/(0.255 0.256) 11.2%.
Indicates asymptotic t-values with significance at 0.10 level.
455