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A nonparametric analysis of the shape dynamics of the US personal income distribution: 1962-2000

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  • Feng Zhu

Abstract

We provide stylized facts on the evolving shape dynamics of the US personal income distribution from 1962 to 2000. Based on adaptive kernel density estimation, we propose an adaptive bootstrap test for multimodality. Our results indicate that multimodality has been a predominant feature of the US income distribution. Both the number and location of modes change over time, revealing rich distributional dynamics and strong heterogeneity. Decomposing the sample by age, education, gender and race, all groups exhibit multiple modes and follow distinct distributional patterns. For all groups and for the population as a whole, income distribution improved over the 1960s, 1970s and 1980s, but deteriorated dramatically in the 1990s.

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  • Feng Zhu, 2005. "A nonparametric analysis of the shape dynamics of the US personal income distribution: 1962-2000," BIS Working Papers 184, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:184
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    Cited by:

    1. Pinkovskiy, Maxim L., 2013. "World welfare is rising: Estimation using nonparametric bounds on welfare measures," Journal of Public Economics, Elsevier, vol. 97(C), pages 176-195.
    2. Vivek Dehejia & Marcel Voia, 2008. "International Income Comparisons and Location Choice: Methodology, Analysis, and Implications," Carleton Economic Papers 08-02, Carleton University, Department of Economics.
    3. Dominique Guegan & Bertrand Hassani & Kehan Li, 2017. "An alternative class of distortion operators alternative tools to generate asymmetrical multimodal distributions," Documents de travail du Centre d'Economie de la Sorbonne 17030, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Esteban Cabrera Cevallos & Edwin Buenaño, 2018. "¿Ha crecido la clase media en el Ecuador? Un análisis mediante índices de polarización del ingreso para el periodo 2007-2014," Revista de Economía del Rosario, Universidad del Rosario, vol. 21(1), pages 121-152, June.
    5. Dominique Guegan & Bertrand Hassani & Kehan Li, 2017. "An alternative class of distortion operators," Post-Print halshs-01543251, HAL.
    6. Dominique Guegan & Bertrand Hassani & Kehan Li, 2017. "An alternative class of distortion operators," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01543251, HAL.
    7. Dehejia Vivek H. & Voia Marcel C., 2012. "International Income Comparisons and Social Welfare: Methodology, Analysis, and Implications," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-24, June.

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    More about this item

    Keywords

    Adaptive kernel method; adaptive multimodality test; bootstrap; income distribution; nonparametric density estimation; population heterogeneity;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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