Selection bias and measures of inequality

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Title: Selection bias and measures of inequality
Authors: Vazquez-Alvarez, Rosalia
Melenberg, Bertrand
Soest, Arthur van
Permanent link: http://hdl.handle.net/10197/1827
Date: Feb-2002
Abstract: 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.
Type of material: Working Paper
Publisher: University College Dublin. Institute for the Study of Social Change
Series/Report no.: ISSC Discussion Paper Series; WP2003/04
Keywords: Selection biasSample nonresponseMeasures of inequalityNonparametric bounds and identification
Subject LCSH: Equality--Econometric models
Sampling (Statistics)
Mathematical statistics
Income distribution--Econometric models
Other versions: http://www.ucd.ie/geary/static/publications/workingpapers/isscwp2003inequality.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

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