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Samling Errors and Cross-Country Comparisons of Income Inequality

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The growing interest in cross-national comparisons of income inequality is primarily a result of the establishment of the Luxembourg Income Study (LIS) database and the wide range of studies on income inequality based on LIS data. These studies suffer, however, from a major weakness since sampling errors neither are reported nor taken into account when nations are ranked according to estimates of the Gini coefficient or some alternative measure of inequality. This paper discusses the impact of accounting for sampling error when making comparisons of income inequality across nations.

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Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 252.

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Date of creation: Mar 1999
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Handle: RePEc:ssb:dispap:252

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Keywords: Income inequiality; the Gini coefficient; sampling errors;

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  1. Aaberge, Rolf, 1997. "Interpretation of changes in rank-dependent measures of inequality," Economics Letters, Elsevier, vol. 55(2), pages 215-219, August.
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Cited by:
  1. Rolf Aaberge & Audun Langørgen & Magne Mogstad & Marit Østensen, 2008. "The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates," Discussion Papers 551, Research Department of Statistics Norway.
  2. Erling Røed Larsen, 2002. "Consumption Inequality in Norway in the 80s and 90s," Discussion Papers 325, Research Department of Statistics Norway.
  3. Magne Mogstad, 2007. "Measuring Income Inequality under Restricted Interpersonal Comparability," Discussion Papers 498, Research Department of Statistics Norway.

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