A Theory on the Discontinuity in Earnings Distributions


  • Accepted by Raffi Indjejikian. This paper is based on a chapter from my dissertation at Carnegie Mellon University. I am indebted to my committee members, Jonathan Glover (cochair), Zhaoyang Gu, and Pierre Jinghong Liang (cochair) for their valuable guidance and suggestions. I gratefully acknowledge the helpful comments and suggestions of two anonymous referees, Raffi Indjejikian, Daniel Collins, Chandra Kanodia, Mark Penno, Joshua Ronen, Bryan Routledge, Pervin Shroff, Martin Wu, Paul Zarowin, and the seminar participants at Carnegie Mellon University, New York University, University of Illinois at Urbana–Champaign, University of Iowa, and University of Minnesota.