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Author: Mills, Jeffrey A.
Resulting in 1 citation.
1. Mills, Jeffrey A.
Zandvakili, Sourushe
Statistical Inference via Bootstrapping for Measures of Inequality
Journal of Applied Econometrics 12,2 (March-April 1997): 133-150.
Cohort(s): NLSY79
Publisher: Wiley Online
Keyword(s): Age and Ageing; Income; Panel Study of Income Dynamics (PSID); Taxes

Permission to reprint the abstract has not been received from the publisher.

The use of bootstrap methods to compute interval estimates is considered and hypothesis tests for decomposable measures of economic inequality are performed. Two applications of this approach, using the Gini coefficient and Theil's (1967) entropy measures of inequality, are provided. The first application employs pre- and post-tax aggregate state income data, constructed from the Panel Study of Income Dynamics. It is found that although casual observation of the inequality measures suggests that the post-tax distribution of income is less equal among states than pre-tax income, none of these observed differences are statistically significant at the 10% level. The second application uses the National Longitudinal Survey of Youth data to study youth inequality. It is found that youth inequality decreases as the cohort ages, but between age-group inequality has increased in the latter half of the 1980s. The results suggest that: 1. statistical inference is essential even when large samples are available, and 2. the bootstrap procedure appears to perform well in this setting.
Bibliography Citation
Mills, Jeffrey A. and Sourushe Zandvakili. "Statistical Inference via Bootstrapping for Measures of Inequality." Journal of Applied Econometrics 12,2 (March-April 1997): 133-150.