On wage density comparisons: bandwidth selectors and test outcomes

Abstract

This study compares wage densities for female workers in the Philippines during the 1990s. Using a non-parametric consistent test developed by Li (1996), the study finds that test outcomes from various optimal bandwidth selectors are fairly comparable. On the other hand, the use of standard deviation as a bandwidth parameter appears to introduce misleading inferences concerning equality of densities.

Acknowledgements

Financial and administrative support from the Japan International Cooperation Agency (JICA) and Japan International Cooperation Center (JICE) are gratefully acknowledged. I would also like to thank my supervisor, Prof. Kimio Morimune. Of course, the remaining errors are mine.