Generalised percentile ratios as robust measures of labour earnings inequality
AbstractWe propose a class of generalised percentile ratios as an alternative to the P90 / P10 ratio for measuring labour earnings inequality. We show that they are more robust to sampling the variation and rounding error prevalent in interview-based surveys, as demonstrated through a Monte Carlo simulation and with Current Population Survey labour earnings data from 1987 to 2005. We find a smoother upward trend in the P90 / P10 ratio over this period than what is shown with conventionally measured P90 / P10 ratios.
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Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Data Analysis Techniques and Strategies.
Volume (Year): 1 (2008)
Issue (Month): 2 ()
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Web page: http://www.inderscience.com/browse/index.php?journalID=282
percentile ratios; robustness; labour earnings inequality.;
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