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Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?

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  • René Böheim
  • Stephen P. Jenkins

Abstract

Most UK surveys, including those used each year to derive the official UK income distribution statistics ('Households Below Average Income'), provide measures of current household income rather than annual household income, which is the measure used in most other countries. Using British Household Panel Survey data, we examine whether estimates of Britain's income distribution and its trends are sensitive to the choice between current and annual income measures. The main finding is that current and annual income measures provide remarkably similar results. We explore why.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.38600.de/dp214.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 214.

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Length: [Getr. Zählung] p.
Date of creation: 2000
Date of revision:
Handle: RePEc:diw:diwwpp:dp214

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  1. Andrew Chesher & Christian Schluter, 2001. "Welfare measurement and measurement error," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP03/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 98(393), pages 1171-82, December.
  3. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, Elsevier, vol. 19(2), pages 376-393, December.
  4. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 428-43, March.
  5. Morris, Nick & Preston, Ian, 1986. "Inequality, Poverty and the Redistribution of Income," Bulletin of Economic Research, Wiley Blackwell, vol. 38(4), pages 275-344, November.
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Cited by:
  1. Dean Hyslop & Suresh Yahanpath, 2005. "Income Growth and Earnings Variations in New Zealand, 1998—2004," Treasury Working Paper Series 05/11, New Zealand Treasury.
  2. Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 285-308.
  3. Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," Discussion Papers of DIW Berlin 672, DIW Berlin, German Institute for Economic Research.
  4. Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
  5. Francesco Devicienti, 2002. "Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997," Journal of Economics, Springer, Springer, vol. 9(1), pages 307-340, December.
  6. Disney, Richard & Whitehouse, Edward, 2001. "Cross-country comparisons of pensioners’ incomes," MPRA Paper 16345, University Library of Munich, Germany.
  7. Richard Dickens & David Ellwood, 2001. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," CEP Discussion Papers dp0506, Centre for Economic Performance, LSE.
  8. Suzie Ballantyne & Simon Chapple & David C. Maré & Jason Timmins, 2003. "Movements Into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement," Working Papers, Motu Economic and Public Policy Research 03_13, Motu Economic and Public Policy Research.

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