The Pareto Curve and Its Utility for Open-Ended Income Distributions in Survey Research

Robert Nash Parker · Rudy Fenwick

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Income, Poverty, and Inequality Labor market dynamics and wage inequality Survey Methodology and Nonresponse

Abstract

Two methods for estimating the midpoint of open-ended categories in income distributions typically found in surveys based on the Pareto Curve are investigated and compared. Results show that the choice of method and the selection of a mean or median estimator for the open-ended category midpoint have substantial effects on analyses in which income is the dependent variable. The accuracy of the two methods is evaluated in simulations using exact income data, and recommendations based on these evaluations are presented.

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1980Immigrant Enclaves: An Analysis of the Labor Market Experiences of Cubans in Miami 1978Stratification in a Dual Economy: A Sectoral Model of Earnings Determination 1980The Structure of Economic Segmentation: A Dual Economy Approach

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