Analysis Of Incomes In The Czech Republic Using The Lognormal Distribution

Jakub Nedved, Ivana Mala

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.

Keywords


Income analysis, Lognormal Distribution, Czech Republic

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References


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