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Alternative Models for the Distribution of Earnings by Occupation

Sandra A. West, Diem-Tran Kratzke, and Shail J. Butani


In this paper different models are considered for the distribution of earnings, by occupation. In particular, several estimators of central tendency for the distribution of earnings data that are grouped and topcoded are developed. Variance and interval estimators are also developed. In order to see the effects of grouping and tail estimation, several actual populations, consisting of earnings data that were not grouped and topcoded are considered. Micro data collected from establishments in the White Collar Pay Survey and the Industry Wage Surveys are used.