USING THE PARETO DISTRIBUTION TO IMPROVE ESTIMATES OF TOPCODED EARNINGS
Philip Armour; Richard V. Burkhauser; Jeff Larrimore;
jel: jel:D31 | jel:J31 | jel:C81 | jel:J01
mesheuropmc: education | health care economics and organizations
Inconsistent censoring in the public-use March Current Population Survey (CPS) limits its usefulness in measuring labor earnings trends. Using Pareto estimation methods with less-censored internal CPS data, we create an enhanced cell-mean series to capture top earnings ... View more
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1972 1977 1982 1987 1992 1997 2002 2007 Pareto - internal data, maximum likelihood method (matches Enhanced Cell Mean Series) Pareto - public use data, proportional method Larrimore et al. cell means Fixed Multiple (1.4 times topcode) Public data, no cell means Sources: Author's calculation using Public-use and Internal March CPS Data.