摘要
This paper deals with the use of Pareto distribution in models of wage distribution. Pareto distribution cannot generally be used as a model of the whole wage distribution, but only as a model for the distribution of higher or of the highest wages. It is usually about wages higher than the median. The parameter b is called the Pareto coefficient and it is often used as a characteristic of differentiation of fifty percent of the highest wages. Pareto distribution is so much the more applicable model of a specific wage distribution, the more specific differentiation of fifty percent of the highest wages will resemble to differentiation that is expected by Pareto distribution. Pareto distribution assumes a differentiation of wages, in which the following ratios are the same： ratio of the upper quartile to the median; ratio of the eighth decile to the sixth decile; ratio of the ninth decile to the eighth decile. This finding may serve as one of the empirical criterions for assessing, whether Pareto distribution is a suitable or less suitable model of a particular wage distribution. If we find only small differences between the ratios of these quantiles in a specific wage distribution, Pareto distribution is a good model of a specific wage distribution. Approximation of a specific wage distribution by Pareto distribution will be less suitable or even unsuitable when more expressive differences of mentioned ratios. If we choose Pareto distribution as a model of a specific wage distribution, we must reckon with the fact that the model is always only an approximation. It will describe only approximately the actual wage distribution and the relationships in the model will only partially reflect the relationships in a specific wage distribution.
