Analysis Of Incomes In The Czech Republic Using The Lognormal Distribution
Abstract
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.References
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. www.cnb.cz.
CZSO. Czech Statistical Office. www.czso.cz.
AEIS1. Informaèní system o prùmìrném výdìlku. http://www.ispv.cz/.
AEIS2. Informaèní system o prùmìrném výdìlku. http://www.ispv.cz/ 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.
Copyright information
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).