Typically, when using Oaxaca's decomposition to measure discrimination against females, either the wage regression for males or the wage regression for females is used as the “non-discriminatory” wage.
The appropriate method for estimating discrimination depends upon whether discrimination consists of a bias against females, a bias for males, or some combination of both. This paper uses a wage frontier approach to estimate the “true” wage regression for both males and females. This approach for measuring discrimination does not require the assumption that the “non-discriminatory” wage is either the male or the female wage.
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