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Selection bias and measures of inequality

Creator:

Vazquez-Alvarez, Rosalia; Melenberg, Bertrand; Soest, Arthur van;

Institution: University College Dublin. Institute for the Study of Social Change
Subject Keywords: Selection bias; Sample nonresponse; Measures of inequality; Nonparametric bounds and identification; C13; D31; D63; C14; Equality--Econometric models; Sampling (Statistics); Mathematical statistics; Income distribution--Econometric models;
Region:
Description:

Variables typically used to measure inequality (e.g., wage earnings, household income or expenditure), are often plagued by nonrandom item nonresponse. Ignoring non-respondents or making (often untestable) assumptions on the nonresponse sub-population can lead to selection bias on estimates of inequality. This paper draws on the approach by Manski (1989,1994) to derive bounding intervals on both the Gini coefficient and the Inter-Quartile range. Both sets of bounds provide alternative measures of inequality which allow for any type of selective
nonresponse, while making no assumptions on the behaviour of non-respondents. The theory
is illustrated measuring earnings inequality (over time and between samples) for post-unification Germany over the nineties.

Format:

application/pdf

Related: http://www.ucd.ie/geary/static/publications/workingpapers/isscwp2003inequality.p...
Suggested citation:

Vazquez-Alvarez, Rosalia; Melenberg, Bertrand; Soest, Arthur van; . () Selection bias and measures of inequality [Online]. Available from: http://publichealthwell.ie/node/662852 [Accessed: 22nd August 2019].

  

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