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Improving the Measure of the Distribution of Personal Income

Author

Listed:
  • Dennis Fixler
  • Marina Gindelsky
  • David Johnson

Abstract

Developing a national account-based measure of the distribution of income from the commonly used census-based concept of money income has been the subject of earlier research. We use publicly available survey and administrative data to construct a distribution of personal income after enhancing the top income distribution in the Current Population Survey (2007 and 2012). We show that inequality measures are fairly sensitive to the definition of income contemporaneously and across time. This work helps bridge the gap between micro data and macro statistics and informs about results from other studies, such as Piketty et al. (2018).

Suggested Citation

  • Dennis Fixler & Marina Gindelsky & David Johnson, 2019. "Improving the Measure of the Distribution of Personal Income," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 302-306, May.
  • Handle: RePEc:aea:apandp:v:109:y:2019:p:302-06
    Note: DOI: 10.1257/pandp.20191037
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    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191037
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    Cited by:

    1. Dennis Fixler & Marina Gindelsky & David Johnson, 2019. "Improving the Measure of the Distribution of Personal Income," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 302-306, May.
    2. Dennis Fixler & Marina Gindelsky & David Johnson, 2020. "Measuring Inequality in the National Accounts," BEA Working Papers 0175, Bureau of Economic Analysis.
    3. Stephen P. Jenkins, 2022. "Top-income adjustments and official statistics on income distribution: the case of the UK," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 151-168, March.
    4. Dennis Fixler & Marina Gindelsky & David S. Johnson, 2020. "Distributing Personal Income: Trends over Time," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 589-603, National Bureau of Economic Research, Inc.
    5. Marina Gindelsky, 2022. "Do transfers lower inequality between households? Demographic evidence from Distributional National Accounts," Economic Inquiry, Western Economic Association International, vol. 60(3), pages 1233-1257, July.
    6. Mark C. Long, 2022. "Seattle's local minimum wage and earnings inequality," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 528-542, April.
    7. Wojciech Kopczuk & Eric Zwick, 2020. "Business Incomes at the Top," Journal of Economic Perspectives, American Economic Association, vol. 34(4), pages 27-51, Fall.
    8. Süssmuth, Bernd & Wieschemeyer, Matthias, 2022. "Taxation and the distributional impact of inflation: The U.S. post-war experience," Economic Modelling, Elsevier, vol. 111(C).
    9. Jagjit S. Chadha & Richard Barwell, 2019. "Renewing our Monetary Vows: Open Letters to the Governor of the Bank of England," National Institute of Economic and Social Research (NIESR) Occasional Papers 58, National Institute of Economic and Social Research.
    10. David S. Johnson, 2019. "Presidential Address: Measurement Matters: Policy in Federal Statistics and Data," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(2), pages 297-307, March.
    11. Benjamin Bridgman, 2025. "A Century of Super–Rich Longevity," BEA Papers 0135, Bureau of Economic Analysis.

    More about this item

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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