Armour, Philip
[Verfasser:in]
;
Larrimore, Jeff
[Sonstige Person, Familie und Körperschaft];
Burkhauser, Richard V.
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
Using the Pareto Distribution to Improve Estimates of Topcoded Earnings
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, January 2014
Erschienen in:NBER working paper series ; no. w19846
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w19846
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
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Beschreibung:
Inconsistent censoring in the public-use March 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 (2010) 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