Choice, Order Statistics and the Distribution of Earnings
DOI:
https://doi.org/10.25071/1874-6322.670Abstract
This paper analyzes the distribution of earnings as being generated by workers choosing among occupations on the basis of earnings maximization. A worker’s earnings then have characteristics of an order statistic. The extension to multiple occupations leads to the revision results from A.D. Roy’s two-occupation case. An additional occupation raises expected earnings while in general reducing earnings inequality. Asymptotic results from order statistics suggest that the process of occupational choice determines a limiting distribution of earnings independently of underlying distributions of occupational abilities.Published
1997-06-06
How to Cite
Sattinger, M. (1997). Choice, Order Statistics and the Distribution of Earnings. Journal of Income Distribution®, 6(1). https://doi.org/10.25071/1874-6322.670
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