Labor Economics 5th Edition by George Borjas

Exercise 15

Consider a data set with the following descriptive statistics.
Wage is the worker's hourly wage; Black takes on a value of 1 if the worker is Black and a value of 0 otherwise; work experience is actual years of work experience, schooling is measured in years; and % female occupation is the percent of all employees in the worker's occupation who are female. The following table reports the regression results from a log-wage regression.
Decompose the raw difference in average wages using the Oaxaca decomposition. Specifically, decompose the raw difference into the portion due to differences in personal characteristics (schooling, race, age, and experience), the portion due to occupation, and the portion left unexplained possibly due to gender discrimination.