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Statistical Measurement of Income Polarization. A cross-national comparison

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  • Axel Schmidt

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    (Seminar of Economic and Social Statistics, University of Cologne)

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    Abstract

    While recent research on income polarization is based on only a few approaches, this paper portrays the major methods and applies each to income distributions of Germany (1984-2000) and the US (1984-1997) using the Cross-National Equivalent Files. In addition, statistical inference is provided via bootstrap techniques. Further, we combine kernel density estimation with a unimodality test. The empirical results reveal increasing polarization and inequality in the US while the corresponding figures remain almost constant for Germany.

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    File URL: http://econpapers.repec.org/cpd/2002/95_Schmidt.pdf
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    Bibliographic Info

    Paper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number D3-1.

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    Date of creation: Mar 2002
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    Handle: RePEc:cpd:pd2002:d3-1

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    Related research

    Keywords: Income polarization; bootstrap; kernel density estimation; unimodality test;

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    1. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
    2. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July.
    3. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
    4. D'Ambrosio, Conchita, 2001. "Household Characteristics and the Distribution of Income in Italy: An Application of Social Distance Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 43-64, March.
    5. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    6. Esteban, J. & Gradin, C. & Ray, D., 1999. "Extension of a Measure of Polarization, with an Application to the Income Distribution of Five OECD Countries," Papers 24, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
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