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Nonparametric Causal Decomposition of Group Disparities

Ang Yu, Felix Elwert

arXiv 28 Jun 2023 · Statistics — Methodology · publishedThe Annals of Applied Statistics (2025) · 11 citations (OpenAlex)

arXiv:2306.16591 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We introduce a new nonparametric causal decomposition approach that identifies the mechanisms by which a treatment variable contributes to a group-based outcome disparity. Our approach distinguishes three mechanisms: group differences in 1) treatment prevalence, 2) average treatment effects, and 3) selection into treatment based on individual-level treatment effects. Our approach reformulates classic Kitagawa-Blinder-Oaxaca decompositions in causal and nonparametric terms, complements causal mediation analysis by explaining group disparities instead of group effects, and isolates conceptually distinct mechanisms conflated in recent random equalization decompositions. In contrast to all prior approaches, our framework uniquely identifies differential selection into treatment as a novel disparity-generating mechanism. Our approach can be used for both the retrospective causal explanation of disparities and the prospective planning of interventions to change disparities. We present both an unconditional and a conditional decomposition, where the latter quantifies the contributions of the treatment within levels of certain covariates. We develop nonparametric estimators that are $\sqrt{n}$-consistent, asymptotically normal, semiparametrically efficient, and multiply robust. We apply our approach to analyze the mechanisms by which college graduation causally contributes to intergenerational income persistence (the disparity in adult income between the children of high- vs low-income parents). Empirically, we demonstrate a previously undiscovered role played by the new selection component in intergenerational income persistence.

Citation extraction

85
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distinct cited
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appendix boundary found by appendix_titled_section at “Appendix A: Proofs for Section 2” · 48% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Jackson, John W. and Tyler J. VanderWeele (2018) Decomposition Analysis to Identify Intervention Targets for Reducing Disparities:0.9507586%
2Jackson, John W (2021) Meaningful Causal Decompositions in Health Equity Research: Definition, Identification, and Estimation Through a Weighting Frame…0.9098575%
3Lundberg, Ian (2024) The Gap-Closing Estimand: A Causal Approach to Study Interventions That Close Disparities Across Social Categories0.8307357%
4VanderWeele, Tyler (2015) Explanation in Causal Inference: Methods for Mediation and Interaction\/0.81142100%
5Heckman, James J, John Eric Humphries, and Gregory Veramendi (2018) Returns to Education: The Causal Effects of Education on Earnings, Health, and Smoking0.7374350%
6Heckman, James J. and Edward Vytlacil (2005) Structural Equations, Treatment Effects, and Econometric Policy Evaluation0.7374350%
7Brand, Jennie E. and Yu Xie (2010) Who Benefits Most from College?: Evidence for Negative Selection in Heterogeneous Economic Returns to Higher Education0.7373367%
8Fortin, Nicole, Thomas Lemieux, and Sergio Firpo (2011) Decomposition Methods in Economics0.73732100%
9Kennedy, Edward H (2022) Semiparametric doubly robust targeted double machine learning: a review0.6444250%
10Brand, Jennie E., Jiahui Xu, Bernard Koch, and Pablo Geraldo (2021) Uncovering Sociological Effect Heterogeneity Using Tree-Based Machine Learning0.6443267%

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Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Heterogeneity Analysis with Heterogeneous Treatments0.51121