Title: Choice, Order Statistics, and the Distribution of Earnings
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. (This abstract was borrowed from another version of this item.)
Publication Year: 1994
Publication Date: 1994-01-01
Language: en
Type: preprint
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