Postcensal Estimates of Household Income Distributions

AbstractResearch background: Household income depends on its demographic composition, age and education of its members, place of residence and many other factors. In our work, we concentrate on the income distribution of Polish households.Purpose: The study aims to compare the household income distributions in Polish voivodeships, taking into account the gender of the family head. We provide evidence on the magnitude and determinants of regional differences in gender-specific income disparities.Research methodology: In order to move beyond estimation based on mean values, we apply the Residual Imputation Approach and extend the Oaxaca-Blinder decomposition procedure to different quantile points along the income distribution. To describe the differences between two income distributions we construct a counterfactual distribution and decompose the inequalities into explained and unexplained components.Results: The regional variation of the gender income gap has been explained with individual and jobrelated characteristics. There exists an important diversity in the size of the gender income gap across the Polish provinces. The results obtained for 16 voivodeships allowed us to group them into four clusters: heavily industrialized voivodeships with a large income gap, weakly industrialized with a low income gap, voivodships with large agglomerations characterized by a low gap, and medium-developed voivodeships with a large, U-shaped gap.Novelty: Our results provide novel insights into the regional dimension of the income gap.

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Zenga's New Index of Economic Inequality, Its Estimation, and an Analysis of Incomes in Italy

Journal of Probability and Statistics ◽

10.1155/2010/718905 ◽

2010 ◽

Vol 2010 ◽

pp. 1-26 ◽

Cited By ~ 17

Author(s):

Francesca Greselin ◽

Leo Pasquazzi ◽

Ričardas Zitikis

Keyword(s):

Simulation Study ◽

Household Income ◽

Economic Inequality ◽

Income Distributions ◽

Time Periods ◽

Geographic Regions ◽

Changes Over Time ◽

Over Time ◽

Analyze Data

For at least a century academics and governmental researchers have been developing measures that would aid them in understanding income distributions, their differences with respect to geographic regions, and changes over time periods. It is a fascinating area due to a number of reasons, one of them being the fact that different measures, or indices, are needed to reveal different features of income distributions. Keeping also in mind that the notions of poor and rich are relative to each other, Zenga (2007) proposed a new index of economic inequality. The index is remarkably insightful and useful, but deriving statistical inferential results has been a challenge. For example, unlike many other indices, Zenga's new index does not fall into the classes ofL-,U-, andV-statistics. In this paper we derive desired statistical inferential results, explore their performance in a simulation study, and then use the results to analyze data from the Bank of Italy Survey on Household Income and Wealth (SHIW).

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Household Incomes in Tax Data: Using Addresses to Move from Tax Unit to Household Income Distributions

The Journal of Human Resources ◽

10.3368/jhr.56.2.0718-9647r1 ◽

2019 ◽

pp. 0718-9647R1 ◽

Cited By ~ 1

Author(s):

Jeff Larrimore ◽

Jacob Mortenson ◽

David Splinter

Keyword(s):

Household Income ◽

Income Distributions ◽

Household Incomes ◽

Tax Unit

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Two-component structure of household income distributions in Poland

Equilibrium ◽

10.24136/eq.2018.029 ◽

2018 ◽

Vol 13 (4) ◽

pp. 603-622

Author(s):

Piotr Łukasiewicz ◽

Krzysztof Karpio ◽

Arkadiusz Orłowski

Keyword(s):

Household Income ◽

Value Added ◽

Parametric Models ◽

Normal Model ◽

Component Structure ◽

Income Distributions ◽

Pareto Model ◽

Two Component ◽

Complex Models ◽

Log Normal

Research background: Studies of the structures of the income distributions have been performed for about 15 years. They indicate that there is no model which describes the distributions in their whole range. This effect is explained by the existence of different mechanisms yielding to low-medium and high incomes. While more than 97% of the distributions can be described by exponential or log-normal models, high incomes (about 3% or less) are in agreement with the power law. Purpose of the article: The aim of this paper is an analysis of the structure of the household income distributions in Poland. We verify the hypothesis about two-part structure of those distributions by using log-normal and Pareto models. Methods: The studies are based on the households’ budgets microdata for years 2004–2012. The two-component models are used to describe the income distributions. The major parts of the distributions are described by the two parametric log-normal model. The highest incomes are described by the Pareto model. We also investigate the agreement with data of the more complex models, like Dagum, and Singh-Madalla. Findings & Value added: One has showed that two or three parametric models explain from about 95% to more than 99% of income distributions. The poorest agreement with data is for the log-normal model, while the best agreement has been obtained for the Dagum model. However, two-part model: log-normal for low-middle incomes and Pareto model for the highest incomes describes almost the whole range of income distributions very well.

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Beyond Oaxaca-Blinder: Accounting for Differences in Household Income Distributions across Countries

10.1596/1813-9450-2828 ◽

2002 ◽

Cited By ~ 3

Author(s):

◽

Francisco Ferreira ◽

Phillippe Leite

Keyword(s):

Household Income ◽

Income Distributions

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Composite Pareto Distributions for Modelling Household Income Distribution in Malaysia

Sains Malaysiana ◽

10.17576/jsm-2021-5007-19 ◽

2021 ◽

Vol 50 (7) ◽

pp. 2047-2058

Author(s):

Muhammad Hilmi Abdul Majid ◽

Kamarulzaman Ibrahim

Keyword(s):

Income Distribution ◽

Household Income ◽

Goodness Of Fit ◽

Threshold Value ◽

Goodness Of Fit Test ◽

Income Distributions ◽

Pareto Distributions ◽

Tail Behaviour ◽

Kolmogorov Smirnov ◽

Income Data

Composite Pareto distributions are flexible as the models allow for data to be described by two distributions: a Pareto distribution for the data above a threshold value and another separate distribution for data below the threshold value. It is noted in some previous literatures that the Paretian tail behaviour can be observed in the distribution of Malaysian household income. In this paper, the composite Pareto models are fitted to the Malaysian household income data of several years. These fitted composite Pareto models are then compared to several univariate models for describing income distribution using pseudo-likelihood based AIC, BIC and Kolmogorov-Smirnov goodness-of-fit test. It is found that the income distributions in Malaysia can be best described by the lognormal-Pareto (II) model as compared to other candidate models.

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Convergence and mobility of rural household income in China

China Agricultural Economic Review ◽

10.1108/caer-09-2015-0126 ◽

2016 ◽

Vol 8 (3) ◽

pp. 383-398 ◽

Cited By ~ 8

Author(s):

Shi Li ◽

Tsun Se Cheong

Keyword(s):

Income Distribution ◽

Household Income ◽

Rural Households ◽

Rural Household ◽

Transitional Dynamics ◽

Rural Sector ◽

Content Type ◽

Income Distributions ◽

Kernel Approach ◽

Per Capita

Purpose The purpose of this paper is to study convergence and income mobility of China’s rural households. Design/methodology/approach The data of rural household income per capita are employed to compute the transitional dynamics in the rural sector. The analyses are conducted at two spatial levels, namely, the national and provincial levels. Ergodic distributions are computed to provide a forecast of future income distributions, whereas Mobility Probability Plots are constructed to offer detailed information on the transitional dynamics. Findings The income distributions are found to have considerable persistence. Another finding is that most of the households (except the extremely low-income households) have a tendency of moving downwards in the income distribution though they are more likely to remain in the same levels of relative income because of their high persistence. Convergence to a unimodal income distribution is possible in the long run, however, the households will converge to a value which is far below China’s per capita gross domestic product. Research limitations/implications Since a lot of the rural households would congregate to the lower part of the income distribution if the transitional dynamics remain unchanged, therefore, it calls for government intervention. Practical implications More resources should be diverted to the rural sector. Social implications The finding also shows that the provinces have very different transitional dynamics even if they are situated in the same economic zone. Thus, the government should formulate province-specific development polices so as to promote greater equality. Originality/value Given that no recent research has been conducted on convergence and transitional dynamics of rural household income. Therefore, this paper attempts to fill the gap in the literature by investigating the pattern and future development of rural household income in China through the use of stochastic kernel approach.

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