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Distribution-Free Statistical Inference for Inequality Dominance with Crossing Lorenz Curves

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  • Charles M. Beach
  • Russell Davidson
  • George A. Slotsve

Abstract

Distribution-free techniques of statistical inference are developed for the cumulative coefficients of variation of an income distribution, thus allowing one to test for inequality dominance when Lorenz curves cross. The full covariance structure of the cumulative sample means and variances is worked out. As an illustration, the procedures are applied to the 1984 and 1990 earnings distributions of male paid workers in the United States, and it is found that the 1990 distribution was significantly less unequal than the 1984 distribution.

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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_912.pdf
File Function: First version 1994
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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 912.

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Length: 18 pages
Date of creation: Nov 1994
Date of revision:
Handle: RePEc:qed:wpaper:912

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Cited by:
  1. Rebecca Valenzuela & Hooi Hooi Lean, 2007. "Stochastic Dominance Analysis Of Australian Income Distributions," Monash Economics Working Papers 21-07, Monash University, Department of Economics.

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