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A Blinder–Oaxaca decomposition for double-hurdle models with an application to migrants’ remittance behaviour

ARISTEI, David

A Blinder–Oaxaca decomposition for double-hurdle models with an application to migrants’ remittance behaviour - Applied Economic Letters Volume , number , .

This article extends the Blinder–Oaxaca decomposition to double-hurdle (DH) models. The proposed methodology focuses on a generalized non-Gaussian DH specification with correlated errors and allows decomposing the gaps in participation probabilities and outcome levels for a wide range of nested specifications. The decomposition technique is applied to analyse differences in remittance behaviour of temporary and permanent migrants.


decomposition analysis
double hurdle models
IHS transformation