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Truncation Bias and the Ordinal Evaluation of Income Inequality

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Author Info
Bishop, John A
Chiou, Jong-Rong
Formby, John P
Abstract

Lorenz dominance analysis is used to examine the effect of top-coding on the ordinal evaluation of U.S. income inequality across time. Current Population Survey microdata are adjusted for truncation bias, and statistical inference procedures are used to examine biennial changes in unadjusted and adjusted Lorenz curves. Beginning in 1985, the truncation bias has a significant effect on ordinal rankings of income inequality.

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Publisher Info
Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 12 (1994)
Issue (Month): 1 (January)
Pages: 123-27
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Handle: RePEc:bes:jnlbes:v:12:y:1994:i:1:p:123-27

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  1. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins & Jeff Larrimore, 2009. "Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data," NBER Working Papers 15320, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. 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!]
    Other versions:
  3. John Bishop & K. Chow & John Formby & Chih-Chin Ho, 1997. "Did Tax Reform Reduce Actual US Progressivity? Evidence from the Taxpayer Compliance Measurement Program," International Tax and Public Finance, Springer, vol. 4(2), pages 177-197, May. [Downloadable!] (restricted)
  4. repec:ese:iserwp: is not listed on IDEAS
  5. Burkhauser, Richard V. & Feng, Shuaizhang & Jenkins, Stephen P. & Larrimore, Jeff, 2009. "Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data," IZA Discussion Papers 4426, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Valentino Dardanoni & Antonio Forcina, 1996. "Inference for the Lorenz Curve Ordering," University of California at San Diego, Economics Working Paper Series 96-26, Department of Economics, UC San Diego. [Downloadable!]
  7. Richard V. Burkhauser & Shuaizhang Feng & Jeff Larrimore, 2008. "Measuring Labor Earnings Inequality using Public-Use March Current Population Survey Data: The Value of Including Variances and Cell Means When Imputing Topcoded Values," NBER Working Papers 14458, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Stephanie Aaronson, 2002. "The rise in lifetime earnings inequality among men," Finance and Economics Discussion Series 2002-21, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
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