JSM 2004 - Toronto

Abstract #301471

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Activity Number: 71
Type: Topic Contributed
Date/Time: Monday, August 9, 2004 : 8:30 AM to 10:20 AM
Sponsor: Section on Government Statistics
Abstract - #301471
Title: An Application of the Salamander: Estimating the Nonmetro/Metro Difference in Wage Ginis Despite Differential Topcoding
Author(s): John Angle*+
Companies: Economic Research Service
Address: 1800 M St., NW, Washington, DC, 20036,
Keywords: Gini ; tail truncation ; topcodes ; Salamander ; wages
Abstract:

The Salamander is a parsimonious gamma pdf mixture model that explains five dynamic patterns in the wage distribution of the U.S. 1961-2001 by inspection of its algebra and two more numerically. The Current Population Survey, March 1962-1967, whose minimum topcodeable annual wage income, $99,900, was 99.99+th percentile permits the evaluation of the Salamander against the lowering of the minimum topcodeable income. The Salamander's estimate of the difference between the Ginis of nonmetro and metro wages is robust against a simulated lowering of the minimum topcodeable income, which truncates more of the metro than the nonmetro distribution's right tail, down to a perhaps surprisingly low quantile.

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