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Recovering income distribution in the presence of interval-censored data

Author

Listed:
  • Fernando Rios-Avila

    (Levy Institute at Bard College)

  • Gustavo Canavire-Bacarreza

    (The World Bank
    Universidad Privada Boliviana)

  • Flavia Sacco-Capurro

    (The World Bank)

Abstract

We propose a method to analyze interval-censored data using a multiple imputation based on a Heteroskedastic Interval regression approach. The proposed model aims to obtain a synthetic dataset that can be used for standard analysis, including standard linear regression, quantile regression, or poverty and inequality estimation. We present two applications to show the performance of our method. First, we run a Monte Carlo simulation to show the method's performance under the assumption of multiplicative heteroskedasticity, with and without conditional normality. Second, we use the proposed methodology to analyze labor income data in Grenada for 2013-2020, where the salary data are interval-censored according to the salary intervals prespecified in the survey questionnaire. The results obtained are consistent across both exercises.

Suggested Citation

  • Fernando Rios-Avila & Gustavo Canavire-Bacarreza & Flavia Sacco-Capurro, 2024. "Recovering income distribution in the presence of interval-censored data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 1039-1060, December.
    • Handle: RePEc:spr:joecin:v:22:y:2024:i:4:d:10.1007_s10888-023-09617-2
    DOI: 10.1007/s10888-023-09617-2
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    More about this item

    Keywords

    Interval-censored data; Monte Carlo simulation; Heteroskedastic interval regression; Wages;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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