Choice, Order Statistics and the Distribution of Earnings

Authors

  • Michael Sattinger

DOI:

https://doi.org/10.25071/1874-6322.670

Abstract

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

Issue

Section

Articles