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Isolating the Roles of Individual Covariates in Reweighting Estimation
Author(s) -
Elder Todd E.,
Goddeeris John H.,
Haider Steven J.
Publication year - 2015
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.2433
Subject(s) - covariate , econometrics , estimation , marginal distribution , statistics , wage , distribution (mathematics) , outcome (game theory) , computer science , economics , mathematics , random variable , market economy , mathematical analysis , management , mathematical economics
Summary A host of recent research has used reweighting methods to analyze the extent to which observable characteristics predict between‐group differences in the distribution of an outcome. Less attention has been paid to using reweighting methods to isolate the roles of individual covariates. We analyze two approaches that have been used in previous studies, and we propose a new approach that examines the role of one covariate while holding the marginal distribution of the other covariates constant. We illustrate the differences between the methods with a numerical example and an empirical analysis of black–white wage differentials among males. Copyright © 2015 John Wiley & Sons, Ltd.