Brenton Clarke

We provide a general approach for deriving the influence function for trimmed likelihood estimators using the implicit function theorem. The approach is applied to lifetime models with exponential or lognormal distributions possessing a linear or nonlinear link function. A side result is that the functional form of the trimmed estimator for location and linear regression used by Bednarski and Clarke (1993, 2002) and Bednarski et al. (2010) is not generally always the correct functional form of a trimmed likelihood estimator. However, it is a version for which the influence function has a treatable form. A real data example shows the effect of trimming using a nonlinear link function for either the exponential or lognormal distribution.

This paper discusses problems associated with the estimation of market wages for females when the primary aim of the estimation is to provide the wage variable for a labour supply equation. The issues are discussed in the context of Mincer's (1974) human capital earnings function, with the major focus being upon methods of correcting for measurement errors and selectivity bias. Empirical estimates are undertaken using data provided in the Australian Bureau of Statistics Special Supplementary Survey No.5 which was carried out in June 1981.