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Measuring wage inequality under right censoring

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Detalhes bibliográficos
Resumo:A conditional tail index estimator is introduced which explicitly allows for right-tail censoring (top-coding). We show that the factor values used to adjust top-coded wages have changed over time and depend on individuals' characteristics, occupations and industries, and propose suitable values. Specifically, contrasting the results of our approach with those of a conservative fixed adjustment factor of 1.5 (used in the literature), suggests that wage inequality in 2017 measured with the Gini coefficient is larger than that suggested by the fixed adjustment factor.
Autores principais:Nicolau, João
Outros Autores:Raposo, Pedro; Rodrigues, Paulo M.M.
Assunto:current population survey occupations pareto tail index top-coding wage inequality weekly wage distribution General Business,Management and Accounting Economics and Econometrics
Ano:2023
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:A conditional tail index estimator is introduced which explicitly allows for right-tail censoring (top-coding). We show that the factor values used to adjust top-coded wages have changed over time and depend on individuals' characteristics, occupations and industries, and propose suitable values. Specifically, contrasting the results of our approach with those of a conservative fixed adjustment factor of 1.5 (used in the literature), suggests that wage inequality in 2017 measured with the Gini coefficient is larger than that suggested by the fixed adjustment factor.