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Analyzing and comparing the impact of alternative concepts of resources in distributional studies: Greece, 2004/5

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Author Info

  • Theodoros Mitrakos

    ()
    (Bank of Greece)

  • Panos Tsakloglou

    (Athens University of Economics and Business)

Abstract

The usual practice in empirical distributional studies is to use either disposable income or consumption expenditure as a proxy for welfare. Essentially, both variables are used as approximations of the unobserved “permanent income” of the population members. This paper exploits the information in the Greek Household Budget Survey of 2004/5 and constructs an indicator of “permanent income” using a latent variable approach. The distributions of disposable income, consumption expenditure and permanent income are compared regarding their level and structure of inequality and poverty. Both inequality and poverty appear to be substantially lower using the distribution of permanent income instead of either the distribution of disposable income or the distribution of consumption expenditure, while differences are also evident when decomposition analysis of inequality and poverty is employed using appropriate indices.

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Bibliographic Info

Paper provided by Bank of Greece in its series Working Papers with number 111.

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Length: 32
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:bog:wpaper:111

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Web page: http://www.bankofgreece.gr
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Keywords: permanent income; inequality; poverty; welfare level;

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  1. Jan Babecky & Philip Du Caju & Theodora Kosma & Martina Lawless & Julian Messina & Tairi Room, 2010. "The Margins of Labour Cost Adjustment: Survey Evidence from European Firms," Working Papers 2010/07, Czech National Bank, Research Department.
  2. Babecky, Jan & Caju, Philip Du & Kosma, Theodora & Lawless, Martina & Messina, Julian & Room, Tairi, 2009. "Downward nominal and real wage rigidity : survey evidence from European firms," Policy Research Working Paper Series 5159, The World Bank.
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Cited by:
  1. Antoninis, M. & Tsakloglou, P., 1997. "On the Distributional Impact of Public Education: Evidence from Greece," Athens University of Economics and Business 97-01, Athens University of Economics and Business, Department of International and European Economic Studies.

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