Compare methods

	Oaxaca-Blinder Decomposition	Shift-Share Analysis
Field	Economics	Economics
Family	Regression model	Process / pipeline
Year of origin	1973	1960
Originator	Ronald Oaxaca & Alan Blinder (independently)	Edgar S. Dunn (Daniel Creamer credited with early use)
Type	Regression-based decomposition of a mean outcome gap	Descriptive decomposition of regional growth
Seminal source	Oaxaca, R. (1973). Male-female wage differentials in urban labor markets. International Economic Review, 14(3), 693–709.	Dunn, E. S. (1960). A statistical and analytical technique for regional analysis. Papers of the Regional Science Association, 6(1), 97–112.
Aliases	Blinder-Oaxaca Decomposition, Wage Gap Decomposition, Threefold Decomposition, Detailed Decomposition	Shift-Share Decomposition, SSA, Esteban-Marquillas Shift-Share, Regional Shift-Share
Related	2	3
Summary	The Oaxaca-Blinder decomposition is a regression-based technique that splits the difference in a mean outcome between two groups — classically the average wage gap between men and women or between racial groups — into a part explained by differences in observable characteristics (endowments such as education and experience) and an unexplained part attributed to differences in how those characteristics are rewarded (the coefficients). Introduced independently by Ronald Oaxaca and Alan Blinder in 1973, it became the standard tool for studying wage discrimination and group disparities.	Shift-share analysis is a descriptive technique that decomposes the change in a regional variable — most often sectoral employment — into three additive components: the part attributable to overall national growth, the part attributable to the region's industry mix, and the part attributable to the region's own competitive performance. Formalized by Edgar Dunn in 1960, it answers whether a region grew because the national economy grew, because it specializes in fast-growing industries, or because its industries outperformed (or underperformed) their national counterparts.