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Measuring Labor Earnings Inequality Using Public-Use March Current Population Survey Data: The Value of Including Variances and Cell Means When Imputing Topcoded Values

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Author Info
Richard Burkhauser
Shuaizhang Feng
Jeff Larrimore

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Abstract

Using the Census Bureau's internal March Current Population Surveys (CPS) file, we construct and make available variances and cell means for all topcoded income values in the publicuse version of these data. We then provide a procedure that allows researchers with access only to the public-use March CPS data to take advantage of this added information when imputing its topcoded income values. As an example of its value we show how our new procedure improves on existing imputation methods in the labor earnings inequality literature.

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File URL: http://www.ces.census.gov/index.php/ces/cespapers?down_key=101846
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 08-38.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 39 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:cen:wpaper:08-38

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Web page: http://www.ces.census.gov

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References listed on IDEAS
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  1. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June. [Downloadable!]
  2. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2007. "Using the P90/P10 Index to Measure US Inequality Trends with Current Population Survey Data: A View from Inside the Census Bureau Vaults," IZA Discussion Papers 2839, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. 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.
  4. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
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