Multivariate Decomposition for Hazard Rate Models

We develop a regression decomposition technique for hazard rate models, where the difference in observed rates is decomposed into components attributable to group differences in characteristics and group differences in effects. The baseline hazard is specified using a piecewise constant exponential model, which leads to convenient estimation based on a Poisson regression model fit to person-period, or split-episode data. This specification allows for a flexible representation of the baseline hazard and provides a straightforward way to introduce time-varying covariates and time-varying effects. We provide computational details underlying the method and apply the technique to the decomposition of the black-white difference in first premarital birth rates into components reflecting characteristics and effect contributions of several predictors, as well as the effect contribution attributable to race differences in the baseline hazard.Poisson regression, hazard rates, decomposition, piecewise constant exponential model

The In-Hospital Mortality Rates of Slaves and Freemen: Evidence from Touro Infirmary, New Orleans, Louisiana, 1855–1860

Using a rich sample of admission records from New Orleans Touro Infirmary, we examine the in-hospital mortality risk of free and enslaved patients. Despite a higher mortality rate in the general population, slaves were significantly less likely to die in the hospital than the whites. We analyze the determinants of in-hospital mortality at Touro using Oaxaca-type decomposition to aggregate our regression results. After controlling for differences in characteristics and maladies, we find that much of the mortality gap remains unexplained. In conclusion, we propose an alternative explanation for the mortality gap based on the selective hospital admission of slaves.hospital, slavery, Oaxaca-type decomposition, New Orleans, Touro

Racial and Ethnic Disparities in the Use of Drug Therapy

The purpose of this research is to explain the variation in the utilization of drug therapy for the medical conditions of depression, high cholesterol, and hypertension between Hispanics, non-Hispanic blacks, and non-Hispanics whites using Oaxaca-type decomposition analysis based on logit estimates. We find that almost the entire share of the utilization differences in drug therapy between blacks and whites can be explained by the differences in the coefficients of observable characteristics, while the sources of the utilization difference between the whites and Hispanics are split between the differences in the observable characteristics and the coefficient estimates. This result implies that strategies to improve racial and ethnic disparities need to be tailored to each group by focusing on the specific factors that are attributed to causing the disparity.high cholesterol, depression, drug therapy, racial and ethnic disparities, hypertension, Oaxaca decomposition

Changes in Korean Wage Inequality, 1980−2005

Korea is known not only for rapid economic growth but also relatively low wage inequality. It is one of the few countries in which wage inequality decreased during the 1980s, though in recent years wage inequality has increased. This paper studies what factors contributed to the changes in wage inequality during the last two decades. This paper implements a recently developed Oaxaca-type inequality decomposition method to decompose "U" shaped changes in inequality into characteristics (quantity), coefficients (price) and residuals effects at both overall and detailed levels. The results of decomposition analysis show that changes in the wage structure significantly contribute to the changes in wage inequality in Korea. The coefficients effect of human capital factors has played a major role not only in increasing wage inequality from mid-1990s, but also decreasing wage inequality in 1980s and early 1990s.decomposition analysis of inequality, earnings equation, coefficients (price) effect, characteristics (quantity) effect, residuals effect

Ethnic Conflict and Economic Disparity: Serbians & Albanians in Kosovo

We use the Living Standards Measurement Study (LSMS) household survey from post-conflict Kosovo to examine economic deprivation among Serbs and Albanians. Economic deprivation is measured by per capita household expenditure and by the incidence of poverty as captured by the headcount ratio. We examine the roles played by the stock of attributes and by the impact of these attributes on deprivation using Oaxaca-type decomposition methods. Empirical results for both decomposition analyses show differences in characteristics as well as returns to measured characteristics favor Serbs, even though Serbs have lower expenditures and higher poverty incidence than Albanians.poverty, ethnicity, decomposition

Was the Mandal Commission Right? Living Standard Differences between Backward Classes and Other Social Groups in India

Affirmative action has been at the heart of public policies towards the socially disadvantaged in India. Compensatory discrimination policies which have been adopted for the Scheduled Castes (SC) and Scheduled Tribes (ST) since independence were recommended for Other Backward Classes (OBC) by the Mandal Commission established by the Indian government in 1979. We examine why OBC have lower living standards, as measured by per capita household consumption expenditures, relative to the mainstream population, and whether these reasons are similar to those observed for SC and ST. We find that while the causes of the living standard gap for the OBC are broadly similar to those for the SC and ST, the role of educational attainment in explaining the gap is higher in importance for the OBC.living standards, caste, reservation policy, decomposition

Was the Mandal Commission Right? Living Standard Differences between Backward Classes and Other Social Groups in India

Affirmative action has been at the heart of public policies towards the socially disadvantaged in India. Compensatory discrimination policies which have been adopted for the Scheduled Castes (SC) and Scheduled Tribes (ST) since independence were recommended for Other Backward Classes (OBC) by the Mandal Commission established by the Indian government in 1979. We examine why OBC have lower living standards, as measured by per capita household consumption expenditures, relative to the mainstream population, and whether these reasons are similar to those observed for SC and ST. We find that while the causes of the living standard gap for the OBC are broadly similar to those for the SC and ST, the role of educational attainment in explaining the gap is higher in imporatnce for the OBC.

A Note on Poverty in Kosovo

Kosovo is a war-torn corner of the former Yugoslavia, where a civil war between ethnic Albanians and ethnic Serbs raged during most of the 1990s. We examine the incidence and depth of poverty and some of its correlates in post-conflict Kosovo using the Living Standards Measurement Survey.http://deepblue.lib.umich.edu/bitstream/2027.42/40193/3/wp807.pd

Gender and Ethnicity in Post-Conflict Kosovo

The paper examines the comparative economic wellbeing of female- and male-headed households among Serbs and Albanians in post-conflict Kosovo. Evidence from the living standards measurement study (LSMS) household survey, 2001, shows that Serb households, both those headed by women and men, are worse off than Albanians households. We find that female-headed households do not generally suffer more than male-headed households, but there is substantial variation among ethnic groups. While Albanian female-headed households are marginally better-off than Albanian male-headed households, Serb female-headed households have the lowest standard of living.consumption, ethnicity, gender