Wage Distribution Models

Authors: Lubos Marek, Michal Vrabec

Abstract: In our article we try to contribute to the discussion of the possibility to predict the trend of the wage distribution. For this purpose we use data from Czech Republic. But our model is useable for all similar data types. Classical models use the probability distribution such as lognormal, Pareto, etc., but their results are not very good. We suggest using a mixture of normal probability distribution (normal mixture) in our model. We focus mainly on the possibility of constructing a mixture of normal distributions based on parameter estimation. We estimate these parameters on the basis of their evolution in time. We work with data collected in the last 15 years. The data are divided into groups with respect to sex, age and regions.

Pages: 124-127

DOI: 10.46300/9103.2022.10.19

International Journal of Economics and Statistics, E-ISSN: 2309-0685, Volume 10, 2022, Art. #19