Robust Estimation of Inequality from Binned Incomes

Volume: 46, Issue: 1, Pages: 212 - 251
Published: Aug 1, 2016
Abstract
Researchers often estimate income inequality by using data that give only the number of cases (e.g., families or households) whose incomes fall in “bins” such as 0 to ,999, 10,000 to 4,999, . . . , ≥$200,000. We find that popular methods for estimating inequality from binned incomes are not robust in small samples, where popular methods can produce infinite, undefined, or arbitrarily large estimates. To solve these and other problems, we...
Paper Details
Title
Robust Estimation of Inequality from Binned Incomes
Published Date
Aug 1, 2016
Volume
46
Issue
1
Pages
212 - 251
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