Abstract
In this study, a robust semi-parametric approach which involves combining the empirical distribution and Pareto model is applied for measuring the income distribution in Malaysia based on the survey data of household incomes for the years of 2007, 2009, 2012 and 2014. From our analysis, it is found that the Pareto model is well fitted to the top household incomes for all years considered, suggesting that this model is a suitable parametric distribution to describe the top household incomes in Malaysia. Based on the semi-parametric Gini, generalized entropy and Atkinson indices, it is found that the income inequality shows a decreasing trend over the period, indicating an improvement of income distribution in Malaysia. Moreover, the fitted semi-parametric Lorenz curves show that the economic pie of the high income group reduced slightly after being taken up by the low income group while there is no clear change for the middle household income group.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Physica A: Statistical Mechanics and its Applications
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
