Imputing a Continuous Income Variable from Grouped and Missing Income Observations

Chandra R. Bhat
University of Massachusetts, Amherst, MA 01003, USA


Most cross-sectional data sets collect income in a discrete number of categories (that is, in grouped form) to simplify the respondent's task and to encourage a response. In spite of such grouped data collection, many respondents refuse to provide information on income. This paper develops a method to impute a continuous and reliable value for income from grouped and missing income data.