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CONDITIONAL DISTRIBUTIONS OF EARNINGS, WAGES AND HOURS FOR BLACKS AND WHITES* University

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Abstract

This paper provides new evidence on the conditional distributions of earnings, wages and hours for white and black males in the University of Michigan’s Panel Study of Income Dynamics. Conditional hours and In wages are approximately normal for both races. Conditional earnings are approximately normal for blacks while earnings are well approximated for whites by the product of normal hours and log-normal wages. The distribution of this product is derived here for the first time. Treating the marginal earnings distribution as the average of the conditional distributions, we use these results to predict poverty and aflluence rates in our sample. 1

Year: 1979
OAI identifier: oai:CiteSeerX.psu:10.1.1.418.6876
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