Generalised percentile ratios as robust measures of labour earnings inequality
by Shuaizhang Feng, Richard V. Burkhauser
International Journal of Data Analysis Techniques and Strategies (IJDATS), Vol. 1, No. 2, 2008

Abstract: We propose a class of generalised percentile ratios as an alternative to the P₉₀ / P₁₀ ratio for measuring labour earnings inequality. We show that they are more robust to sampling the variation and rounding error prevalent in interview-based surveys, as demonstrated through a Monte Carlo simulation and with Current Population Survey labour earnings data from 1987 to 2005. We find a smoother upward trend in the P₉₀ / P₁₀ ratio over this period than what is shown with conventionally measured P₉₀ / P₁₀ ratios.

Online publication date: Tue, 04-Nov-2008

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