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A Nifty Fix for Published Distribution Statistics: Simplified Distribution-Free Statistical Inference

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  • Charles Beach

Abstract

This paper applies the tool box measures of disaggregative income inequality characterization and the statistical methodology of Beach (2021) to percentile-based distribution statistics such as quintile income shares and decile means typically published by official statistical agencies. It derives standard error formulas for those measures which are distribution-free and easy to implement. The approach is illustrated with Canadian Labour Force Survey data over 1997-2015. It is found that widely shared real earnings gains were experienced over this period, but that the gains were very unevenly shared with middle-class workers losing out relatively and top earners having highly statistically significant earnings gains.

Suggested Citation

  • Charles Beach, 2021. "A Nifty Fix for Published Distribution Statistics: Simplified Distribution-Free Statistical Inference," Working Paper 1477, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1477
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1477.pdf
    File Function: First version 2021
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    References listed on IDEAS

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    1. Charles Beach, 2021. "A Useful Empirical Tool Box for Distributional Analysis," Working Paper 1466, Economics Department, Queen's University.
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      More about this item

      Keywords

      income inequality; inequality inference; statistical inference;
      All these keywords.

      JEL classification:

      • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
      • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
      • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
      • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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