Modelling the age-dependent personal income distribution in the USA
AbstractNumerical modelling of the age-dependent personal income distribution (PID) in the USA is fulfilled based on a micro- and macroeconomic model and results of the overall PID modelling. As expected from the age-dependent accuracy of the Current Population Surveys, the model has demonstrated an excellent prediction power in almost all income bins except the lowermost ones. Here we address the problem of the fine age structure of the PIDs. The age-dependent PIDs are modelled by using the same defining parameters as the overall PIDs. The predicted PIDs accurately describe the observed ones reproducing such complex features as the exponential PID decay in the youngest and oldest age groups. The evolution of the age-dependent PIDs in time is also accurately predicted. The difference in the PID levels in the youngest age group is explained by some shortcomings in the design of the enumeration procedure. Corresponding recommendations are given in order to improve the PID estimates.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 17.
Length: 29 pages
Date of creation: 2006
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
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- Kitov, Ivan & Kitov, Oleg, 2013. "The dynamics of personal income distribution and inequality in the United States," MPRA Paper 48649, University Library of Munich, Germany.
- Kitov, Ivan, 2008.
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- Ivan O. Kitov, 2008. "Modeling the evolution of age-dependent Gini coefficient for personal incomes in the U.S. between 1967 and 2005," Working Papers 95, ECINEQ, Society for the Study of Economic Inequality.
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