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Income Inequality: Age & Sex Impact Analysis

The analysis of the 2018 General Social Survey dataset investigates the impact of age and sex on income inequality. The study finds that while the majority of respondents earn below $50,000, a small fraction earns significantly more, indicating income disparity. The model explains 7.9% of the variance in income, with concerns about the reliability of self-reported income data.

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0% found this document useful (0 votes)
5 views7 pages

Income Inequality: Age & Sex Impact Analysis

The analysis of the 2018 General Social Survey dataset investigates the impact of age and sex on income inequality. The study finds that while the majority of respondents earn below $50,000, a small fraction earns significantly more, indicating income disparity. The model explains 7.9% of the variance in income, with concerns about the reliability of self-reported income data.

Uploaded by

Skillo Syda
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1

General Social Survey 2018 Dataset Blog Post

Students Name

Institution Affiliation

Course Title

Due Date
2

General Social Survey 2018 Dataset Blog Post

This analysis was based on 2018 General Social Survey dataset. Income inequality

remains a pressing social issue. By examining how age and sex affect income, we can gain

insights into economic disparities in society. The General Social Survey (GSS) provides a

valuable dataset for exploring these patterns, making it an ideal choice for this analysis.

Specifically, I asked:

Research Question

Does the respondent's sex and age impact the respondent's income in constant dollars?

Hypothesis

H0: There is no statistically significant effect of the respondent’s sex and age towards

the respondent's income in constant dollars.

H1: There is a statistically significant effect of the respondent’s sex and age of

respondent towards the respondent's income in constant dollars.

Variable 1: Respondents Age

Variable 2: The Yearly Income of the Respondent.

Descriptive Statistics Summary

Histogram with Density Curve

The histogram with a density overlay shows that most respondents earn below

$50,000, while a long right tail extends towards higher incomes. This indicates income

inequality, where only a small fraction earns substantially more than the majority.
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Boxplot

The boxplot confirms this skew. While the majority of incomes cluster tightly around

the median, several high-income outliers stretch the boxplot upward. These outliers are

realistic given that some respondents occupy top-paying jobs.

Table 1: Descriptive Table

Descriptive table

Std. Change Statistics

Adjusted Error of R

R R the Square F Sig. F

Model R Square Square Estimate Change Change df1 df2 Change

1 .281a .079 .074 31020.590 .079 16.632 2 387 .000

a. Predictors: (Constant), AGE OF RESPONDENT, MALE

b. Dependent Variable: RESPONDENT INCOME IN CONSTANT DOLLARS

Table 1 indicates R square equals .0.079. This indicates that the model can explain

7.9% of the variance in the respondent income in constant dollars.


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The Histogram Boxplot

Figure 1: Test for significant outliers in independent variable age of respondent

According to figure 1, for variable 1, our independent variable age of respondent has

no significant outliers.
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Figure 2: Test for significant outliers in dependent variable respondent income in constant
dollars.
According to figure 2, for variable 2, our dependent variable respondent income in

constant dollars has no significant outliers since it is normal to have extremely high-paid

individuals.

Measurement Validity and Reliability

Validity: Income is self-reported, raising the possibility of bias—respondents may

overestimate or underreport. Age and sex are straightforward demographic variables and thus

more valid.

Reliability: Income measures can vary depending on how the question was

interpreted (gross vs. net income, monthly vs. yearly reporting). Repeated surveys with the

same respondent might not yield identical results. However, demographic variables like age

and sex are highly reliable.


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Future Research

We concluded that our data were randomly and independently sampled because we

had no access to the research design, and hence the assumption of independence of

observation was not violated. We should have more than two independent variables if no

assumptions were violated, including the assumption that our dependent variable should be

measured on a continuous scale. Multiple regression was performed to see if the gender and

age of the respondents affect their income in constant dollars.


7

Reference

Wang, T., Li, Q., Chen, B., & Li, Z. (2018). Multiple outliers detection in sparse high-

dimensional regression. Journal of Statistical Computation and Simulation, 88(1), 89-

107.

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