Tournaments and Superstar models: A Mixture of two Pareto distributions
Michel Lubrano () and
Abdoul Aziz Junior Ndoye
Additional contact information
Abdoul Aziz Junior Ndoye: GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales
Post-Print from HAL
We provide a Bayesian inference for a mixture of two Pareto distributions which is then used to approximate the upper tail of a wage distribution. The model is applied to the data from the CPS Outgoing Rotation Group to analyze the recent structure of top wages in U.S. from 1992 through 2009. We found enormous earnings inequality between the very highest wage earners ("the superstars"), and the other high wage earners. These findings are largely in accordance with the alternative explanations combining the model of super-stars and the model of tournaments in hierarchical organization structure. The approach can be used to analyze the recent pay gaps among top executives in large firms so as to exhibit the "superstar" effect.
Keywords: Economie; quantitative (search for similar items in EconPapers)
Note: View the original document on HAL open archive server: https://hal-amu.archives-ouvertes.fr/hal-01474416
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published in Bishop, J. and Rodríguez, J. G. Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting, 22, Emerald Group Publishing Limited, pp.449--479, 2014, Research on Economic Inequality, 978-1-78350-567-8
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Chapter: Tournaments and Superstar Models: A Mixture of Two Pareto Distributions (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01474416
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().