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Do current income and annual income measures provide different pictures of Britain's income distribution?

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  • Böheim, René
  • Jenkins, Stephen P.
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    Abstract

    Most UK surveys, including those used each year to derive the official UK income distribution statistics (‘Households Below Average Income’), provides 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: https://www.iser.essex.ac.uk/publications/working-papers/iser/2000-16.pdf
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    Bibliographic Info

    Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2000-16.

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    Date of creation: 01 May 2000
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    Publication status: published
    Handle: RePEc:ese:iserwp:2000-16

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    Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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    Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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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. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, Elsevier, vol. 19(2), pages 376-393, December.
    3. 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.
    4. 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.
    5. 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.
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    Cited by:
    1. Whitehouse, Edward, 2000. "How Poor are the Old? A Survey of Evidence from 44 Countries," MPRA Paper 14177, University Library of Munich, Germany.
    2. Dickens, Richard & Ellwood, David T., 2001. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," Working Paper Series rwp01-010, Harvard University, John F. Kennedy School of Government.
    3. 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.
    4. 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.
    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. 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.

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