USING THE PARETO DISTRIBUTION TO IMPROVE ESTIMATES OF TOPCODED EARNINGS.

Inconsistent censoring in the public-use March Current Population Survey ( CPS) limits its usefulness in measuring labor earnings trends, as previous approaches for imputing topcoded earnings systematically understate top earnings. Using Pareto estimation methods with less-censored internal data, we...

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Publicado en:Economic Inquiry Vol. 54; no. 2; pp. 1263 - 1274
Autores principales: Armour, Philip, Burkhauser, Richard V., Larrimore, Jeff
Formato: Artículo
Publicado: Wiley-Blackwell Apr2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: USING THE PARETO DISTRIBUTION TO IMPROVE ESTIMATES OF TOPCODED EARNINGS.
      aug:
        au:
          Armour, Philip
          Burkhauser, Richard V.
          Larrimore, Jeff
        affil:
          Associate Economist, RAND Corporation, Santa Monica CA, 90407
          Sarah Gibson Blanding Professor of Policy Analysis, Cornell University, Ithaca NY, 14853
          Research Fellow, University of Melbourne, Parkville Australia
          Economist, Federal Reserve Board, Washington DC, 20551
      su:
        United States
        United States. Social Security Administration
        Labor market
        Income inequality
        History
        Pareto distribution
        Cumulative distribution function
        Rotation groups
      sug:
        subj:
          Labor market
          Income inequality
          History
          United States
          United States. Social Security Administration
          Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs)
          Pareto distribution
          Cumulative distribution function
          Rotation groups
      ab: Inconsistent censoring in the public-use March Current Population Survey ( CPS) limits its usefulness in measuring labor earnings trends, as previous approaches for imputing topcoded earnings systematically understate top earnings. Using Pareto estimation methods with less-censored internal data, we create an enhanced cell-mean series to capture top earnings in the public-use data. Annual earnings inequality trends since 1963 using our series largely mirror those found by Kopczuk, Saez, and Song using social security administration data for commerce and industry workers. When we extend our analysis to 2013 and consider all workers, earnings inequality levels are higher but its growth is more modest. ( JEL C81, D31, J01)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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