The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets
AbstractThe inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from secondary inequality datasets in general. We develop techniques to deal with national and international comparability problems intrinsic to such datasets. The result is a new dataset of consistent inequality series, allowing us to explore problems of measurement error. In addition, the new data allow us to perform parametric non-linear estimation of Lorenz curves from grouped data. This in turn allows us to estimate the entire income distribution, computing alternative inequality indexes and poverty estimates. Finally, we have used our broadly comparable dataset to examine international patterns of inequality and poverty.
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Bibliographic InfoPaper provided by Institue for International and Development Economics in its series IIDE Discussion Papers with number 20070805.
Length: 64 pages
Date of creation: Aug 2007
Date of revision:
Income distribution datasets; inequality trends; Lorenz curve estimation; poverty estimation;
Other versions of this item:
- Francois, Joseph & Rojas-Romagosa, Hugo, 2005. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," CEPR Discussion Papers 5214, C.E.P.R. Discussion Papers.
- Joseph F. Francois & Hugo Rojas-Romagosa, 2005. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," Tinbergen Institute Discussion Papers 05-079/2, Tinbergen Institute.
- Francois, Joseph F. & Rojas-Romagosa, Hugo, 2005. "The construction and interpretation of combined cross-section and time-series inequality datasets," Policy Research Working Paper Series 3748, The World Bank.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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