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Measuring Income Inequality Across Countries and Over Time: The Standardized World Income Inequality Database

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  • Solt, Frederick

    (University of Iowa)

Abstract

Objective: This article documents wide-ranging revisions to the Standardized World Income Inequality Database (SWIID), which seeks to maximize the comparability of income inequality estimates for the broadest possible coverage of countries and years. Methods: Two k-fold cross-validations, by observation and by country, are used to evaluate the SWIID's success in predicting the Luxembourg Income Study (LIS), recognized in the field as setting the standard for comparability. Results: The cross-validations indicate that the new SWIID's estimates and their uncertainty are even more accurate than previous versions, extending its advantage in comparability over alternate income inequality datasets. Conclusion: Given its superior coverage and comparability, the SWIID remains the optimum source of data for broadly cross-national research on income inequality.

Suggested Citation

  • Solt, Frederick, 2019. "Measuring Income Inequality Across Countries and Over Time: The Standardized World Income Inequality Database," SocArXiv mwnje, Center for Open Science.
    • Handle: RePEc:osf:socarx:mwnje
    DOI: 10.31219/osf.io/mwnje
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    References listed on IDEAS

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    1. A. B. Atkinson & A. Brandolini, 2009. "On data: a case study of the evolution of income inequality across time and across countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(3), pages 381-404, May.
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    3. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries: The case of middle-income countries from the LIS database," WIDER Working Paper Series 149, World Institute for Development Economic Research (UNU-WIDER).
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    7. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," LIS Working papers 496, LIS Cross-National Data Center in Luxembourg.
    8. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries," LIS Working papers 756, LIS Cross-National Data Center in Luxembourg.
    9. David K. Jesuit & Vincent A. Mahler, 2010. "Comparing Government Redistribution Across Countries: The Problem of Second‐Order Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1390-1404, December.
    10. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 231-242, June.
    11. Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
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