Generalised percentile ratios as robust measures of labour earnings inequality

Shuaizhang Feng and Richard Burkhauser

International Journal of Data Analysis Techniques and Strategies, 2008, vol. 1, issue 2, 117-125

Abstract: We propose a class of generalised percentile ratios as an alternative to the P₉₀ / P₁₀ ratio for measuring labour earnings inequality. We show that they are more robust to sampling the variation and rounding error prevalent in interview-based surveys, as demonstrated through a Monte Carlo simulation and with Current Population Survey labour earnings data from 1987 to 2005. We find a smoother upward trend in the P₉₀ / P₁₀ ratio over this period than what is shown with conventionally measured P₉₀ / P₁₀ ratios.

Keywords: percentile ratios; robustness; labour earnings inequality. (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ids:injdan:v:1:y:2008:i:2:p:117-125

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