The Structure of Earnings and the Measurement of Income Inequality in the U.S.

Abstract

Introduction. Trends in the Labor Market. On the Generation, Measurement and Description of the Size Distribution of Income. Hypotheses on How Observed Distributions are Generated. Measuring Inequality. Axiom-Based Inequality Measurement and Theil's Entropy Measures. Approximating the Observed Income Distribution: Parametric Forms. The Lorenz Curve: A Nonparametric Description of the Observed Distribution. Identifying Distributional Forms Utilizing the k - Criterion. Introduction. The Test. Approximating Income Distributions: The Beta Distribution of the Second Kind. Introduction. The Model. The Beta Distribution of the Second Kind and Income Inequality Across States for Various Population Subgroups. Empirical Results. Policy Implications. Another Example: The Size Distribution of Labor and Nonlabor Income. Summary and Conclusions. Inequality across Demographic Groups. Measuring Income Inequality. Empirical Results for Various Demographic Groups. The Distribution of Earnings across Occupations. Introduction. A Description of the Data. The Empirical Results. Summary and Concluding Remarks. A Review and Summary of our Findings. Future Research Applications.