Two methods for estimating the midpoint of open-ended categories in income distributions typically found in surveys based on the Pareto Curve are investigated and compared. Results show that the choice of method and the selection of a mean or median estimator for the open-ended category midpoint have substantial effects on analyses in which income is the dependent variable. The accuracy of the two methods is evaluated in simulations using exact income data, and recommendations based on these evaluations are presented.
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Parker et al. (1983) studied this question.