@article{2b01a7c6a3764f5fba051e5daadc91ef,
title = "Measuring wage inequality under right censoring",
abstract = "A conditional tail index estimator is introduced which explicitly allows for right-tail censoring (top-coding). We show that the factor values used to adjust top-coded wages have changed over time and depend on individuals' characteristics, occupations and industries, and propose suitable values. Specifically, contrasting the results of our approach with those of a conservative fixed adjustment factor of 1.5 (used in the literature), suggests that wage inequality in 2017 measured with the Gini coefficient is larger than that suggested by the fixed adjustment factor.",
keywords = "current population survey, occupations, pareto, tail index, top-coding, wage inequality, weekly wage distribution",
author = "Jo{\~a}o Nicolau and Pedro Raposo and Rodrigues, {Paulo M.M.}",
note = "Funding Information: The authors thank two anonymous referees, the Co‐Editor (Shankha Chakraborty), Daron Acemoglu, David Autor, Manuel Arellano, participants of the Workshop on and of the IX Workshop in for their helpful and constructive feedback on an earlier version of this paper, and Filipe Caires for excellent research assistance. This work was funded by Funda{\c c}{\~a}o para a Ci{\^e}ncia e Tecnologia through project number UID/Multi/00491/2019, PTDC/EGE‐ECO/28924/2017, UID/ECO/00124/2013, UID/ECO/00124/2019, UID/GES/00407/2013, UIDB/05069/2020 and Social Sciences DataLab (LISBOA‐01‐0145‐FEDER‐022209), POR Lisboa (LISBOA‐01‐0145‐FEDER‐007722, LISBOA‐01‐0145‐FEDER‐022209), and POR Norte (LISBOA‐01‐0145‐FEDER‐022209). New Frontiers in Statistics of Extremes t Time Series Econometrics Publisher Copyright: {\textcopyright} 2022 Western Economic Association International.",
year = "2023",
month = apr,
day = "1",
doi = "10.1111/ecin.13119",
language = "English",
volume = "61",
pages = "377--401",
journal = "Economic Inquiry",
issn = "0095-2583",
publisher = "Oxford University Press",
number = "2",
}