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Title:Income Thresholds and Income Classes PDF Logo
Authors:D'Ambrosio, Conchita
Muliere, Pietro
Secchi, Piercesare
Issue Date:2003
Series/Report no.:DIW-Diskussionspapiere 325
Abstract:This paper proposes a method for detecting income classes based on the change-point problem. There is an increasing demand for such a method in the literature. Computation of polarization indices requires a pre-grouping of the incomes. Similarly, indices of social exclusion and sometimes indices of income inequality require detection of thresholds. The estimation procedure is implemented using a bootstrap technique. Finally, an application of the method to EU member states and to the United States is also considered.
Subjects:income distribution
change-point
thresholds
JEL:D31
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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