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Measuring Inequality Using Censored Data: A Multiple Imputation Approach Author info | Abstract | Publisher info | Download info | Related research | Statistics Stephen Jenkins
Richard Burkhauser
Shuaizhang Feng
Jeff Larrimore
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To measure income inequality with right censored (topcoded) data, we propose multiple imputation for censored observations using draws from Generalized Beta of the Second Kind distributions to provide partially synthetic datasets analyzed using complete data methods. Estimation and inference uses Reiter’s (Survey Methodology 2003) formulae. Using Current Population Survey (CPS) internal data, we find few statistically significant differences in income inequality for pairs of years between 1995 and 2004. We also show that using CPS public use data with cell mean imputations may lead to incorrect inferences about inequality differences. Multiply-imputed public use data provide an intermediate solution.
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Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number
09-05.
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Length: 35 pages
Date of creation: Apr 2009Date of revision:
Handle: RePEc:cen:wpaper:09-05Contact details of provider: Web page: http://www.ces.census.gov
For technical questions regarding this item, or to correct its listing, contact: (Cheryl Grim).
Keywords: Income Inequality ; Topcoding ; Partially Synthetic Data ; CPS ; Current Population Survey ; Generalized Beta of the Second Kind distribution ; Other versions of this item:
Paper Jenkins, Stephen P. & Burkhauser, Richard V. & Feng, Shuaizhang & Larrimore, Jeff, 2009.
"Measuring Inequality Using Censored Data: A Multiple Imputation Approach ,"
IZA Discussion Papers
4011, Institute for the Study of Labor (IZA).
[Downloadable!] Stephen P. Jenkins & Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2009.
"Measuring inequality using Censored data: A multiple imputation approach ,"
Working Papers
108, ECINEQ, Society for the Study of Economic Inequality.
[Downloadable!] Stephen P. Jenkins & Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2009.
"Measuring Inequality Using Censored Data: A Multiple Imputation Approach ,"
Discussion Papers of DIW Berlin
866, DIW Berlin, German Institute for Economic Research.
[Downloadable!] Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Thomas Lemieux, 2006.
"Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill? ,"
American Economic Review ,
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[Downloadable!]
Cowell, F.A., 2000.
"Measurement of inequality ,"
Handbook of Income Distribution ,
in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166
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[Downloadable!] (restricted)
Bishop, John A & Formby, John P & Smith, W James, 1991.
"International Comparisons of Income Inequality: Tests for Lorenz Dominance across Nine Countries ,"
Economica ,
London School of Economics and Political Science, vol. 58(232), pages 461-77, November.
[Downloadable!] (restricted)
Feng, Shuaizhang & Burkhauser, Richard V. & Butler, J.S., 2006.
"Levels and Long-Term Trends in Earnings Inequality: Overcoming Current Population Survey Censoring Problems Using the GB2 Distribution ,"
Journal of Business & Economic Statistics ,
American Statistical Association, vol. 24, pages 57-62, January.
[Downloadable!] (restricted)
Martin Biewen & Stephen P. Jenkins, 2006.
"Variance Estimation for Generalized Entropy and Atkinson Inequality Indices: the Complex Survey Data Case ,"
Oxford Bulletin of Economics and Statistics ,
Department of Economics, University of Oxford, vol. 68(3), pages 371-383, 06.
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Other versions: David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008.
"Trends in U.S. Wage Inequality: Revising the Revisionists ,"
The Review of Economics and Statistics ,
MIT Press, vol. 90(2), pages 300-323, 06.
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Bishop, John A & Chiou, Jong-Rong & Formby, John P, 1994.
"Truncation Bias and the Ordinal Evaluation of Income Inequality ,"
Journal of Business & Economic Statistics ,
American Statistical Association, vol. 12(1), pages 123-27, January.
Gartner, Hermann & Rässler, Susanne, 2005.
"Analyzing the changing gender wage gap based on multiply imputed right censored wages ,"
IAB Discussion Paper
200505, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
[Downloadable!]
Atkinson, Anthony B., 1970.
"On the measurement of inequality ,"
Journal of Economic Theory ,
Elsevier, vol. 2(3), pages 244-263, September.
[Downloadable!] (restricted)
Schluter, Christian & Trede, Mark, 2002.
"Tails of Lorenz curves ,"
Journal of Econometrics ,
Elsevier, vol. 109(1), pages 151-166, July.
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Beach, Charles M & Richmond, James, 1985.
"Joint Confidence Intervals for Income Shares and Lorenz Curves ,"
International Economic Review ,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 439-50, June.
[Downloadable!] (restricted)
Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996.
"Robustness Properties of Inequality Measures ,"
Econometrica ,
Econometric Society, vol. 64(1), pages 77-101, January.
[Downloadable!] (restricted)
Di An & Roderick J. A. Little, 2007.
"Multiple imputation: an alternative to top coding for statistical disclosure control ,"
Journal Of The Royal Statistical Society Series A ,
Royal Statistical Society, vol. 170(4), pages 923-940.
[Downloadable!] (restricted)
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins & Jeff Larrimore, 2008.
"Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring ,"
NBER Working Papers
14247, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins & Jeff Larrimore, 2008.
"Estimating Trends in U.S. Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring ,"
Working Papers
08-25, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Burkhauser, Richard V. & Feng, Shuaizhang & Jenkins, Stephen P. & Larrimore, Jeff, 2008.
"Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring ,"
IZA Discussion Papers
3690, Institute for the Study of Labor (IZA).
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