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The Construction of Gross Income Variables of Eusilc (Eu Statistics on Income and Living Conditions) in Italy: A Mixed Strategy Using Microsimulation and Administrative Data

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  • Gabriella Donatiello

    ()

  • Gianni Betti

    ()

  • Paolo Consolini

    ()

Abstract

According to the EU Regulation on European Statistics on Income and Living Conditions (EU-SILC), Italy will provide household gross income statistics starting from survey year 2007. Since in Italy both survey and fiscal data are used for the construction of the EU-SILC target variables, for the netgross conversion of income variables, Istat has experimented a new methodology using in conjunction a microsimulation model (Siena Micro-Simulation Model SM2- EU-SILC) and an exact record linkage between survey and fiscal data at micro level. The integration of microsimulation with register data has the advantage of using administrative data for the validation of microsimulation results. Since tax data have un incomplete coverage in respects of all surveyed individuals or in respects of some kind of social insurance contributions (i.e. employers’ contribution), SM2-EU-SILC could estimate those taxes and social insurance contributions not covered by register data. Finally, the use of microsimulation and administrative data improves the quality and the amount of information on gross income. This paper summarises the data production process and its main results, focussing on the joint use of SM2-EU SILC and on the records linkage between survey and administrative data as well.

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Bibliographic Info

Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 652.

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Date of creation: Sep 2012
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Handle: RePEc:usi:wpaper:652

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Keywords: EU-SILC; sample and administrative data; net-to-gross conversion; income distribution;

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  1. Gianni Betti & Gabriella Donatiello & Vijay Verma, 2011. "The siena microsimulation model (sm2) for net-gross conversion of eu-silc income variables," International Journal of Microsimulation, Interational Microsimulation Association, vol. 4(1), pages 35-53.
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