Analysis Of Incomes In The Czech Republic Using The Lognormal Distribution

Jakub Nedved, Ivana Mala


In the paper the three parametric lognormal distribution is used as a model of hourly wage distribution in the Czech Republic. Data from the Average Earnings Information System from 2000-2010 are analysed. Random samples from the second quarter of 2009 survey are used and separate models are constructed for business and non-business spheres of economy. Three methods of estimation were used to estimate unknown parameters: maximum likelihood method, moment method and quantile method. Quality of fits was compared and the impact of the method of estimation on quality of fit was quantified. Characteristics of location and variability were estimated and their values were compared with sample values. The results of Average Earnings Information System have been published since 2000. In the text lognormal model was fit with the use of selected quantiles from 2000 and 2010.


Income analysis, Lognormal Distribution, Czech Republic

Full Text:



Bílková, Diana. Application of Lognormal Curves in Modeling of Wage Distributions. Journal of Applied Mathematics, 1 (2), pp. 341

- 352, 2008.

Bílková, Diana. Use of the L­Moments Method in Modeling the Wage Distribution. Bratislava February 1 – 4, 2011, Proceedings. In: 10th

International Conference APLIMAT 2011, Bratislava: Slovak University of Technology, Bratislava, 1471–1481.

Chakravarty, Satya R. and Aditi Majumder. Distribution of Personal Income: Development of a new Model and its Application to U.S.

Income Data. Journal of Applied Econometrics5/2 Apr. – Jun., 1990: 189­196.

CNB. Czech National bank.

CZSO. Czech Statistical Office.

AEIS1. Informaèní system o prùmìrném výdìlku.

AEIS2. Informaèní system o prùmìrném výdìlku. cz/Vysledky­setreni/Archiv.aspx.

Johnson, Norman L., Narayanaswamy Balakrishnan and Samuel Kotz. Continuous Univariate Distributions. Vol. 1. New York: John

Wiley & Sons, 1994.

Jurajda, Štìpán (2009). Regional Divergence and Returns to Schooling.

Kleiber, Christian and Samuel Kotz. Statistical Size Distributions in Economics and Actuarial Sciences. New York: Wiley­Interscience,

Nedvìd, Jakub. Využití logaritmicko­normálního rozdìlení pøi analýze pøíjmù. Bachelor thesis. University of Economics, Prague,

Pavelka, Roman. Application of density mixture in the probability model construction of wage distributions, Applications o Mathematics and Statistics in Economy: AMSE 2009, Uherské hradištì, 2009, 341­350, 2009.

Titterington, D.M., Smith, A.F., Makov, U.E. Statistical analysis of finite mixture distributions, Wiley, 1985.


  • There are currently no refbacks.

Print ISSN 2045-3345, Online ISSN 2047-7848

(c) 2016 English Time Schools and Overseas Education