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An integrated approach for a top-corrected income distribution

Author

Listed:
  • Charlotte Bartels

    (DIW
    IZA
    UCFS)

  • Maria Metzing

    (DIW)

Abstract

Household survey data provide a rich information set on income, household context and demographic variables, but tend to underreport incomes at the very top of the distribution. Administrative data like tax records offer more precise information on top incomes, but at the expense of household context details and incomes of non-filers at the bottom of the distribution. We combine the benefits of the two data sources and develop an integrated approach for top-corrected income distributions where we impute top incomes in survey data using information on top income distribution from tax data. We apply our approach to European EU-SILC survey data which in some countries include administrative data. We find higher inequality in those European countries that exclusively rely (Germany, UK) or have relied (Spain) on interviews for the provision of EU-SILC survey data as compared to countries that use administrative data.

Suggested Citation

  • Charlotte Bartels & Maria Metzing, 2019. "An integrated approach for a top-corrected income distribution," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 125-143, June.
  • Handle: RePEc:spr:joecin:v:17:y:2019:i:2:d:10.1007_s10888-018-9394-x
    DOI: 10.1007/s10888-018-9394-x
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    Cited by:

    1. Michał Brzeziński & Michał Myck & Mateusz Najsztub, 2019. "Reevaluating distributional consequences of the transition to market economy in Poland: new results from combined household survey and tax return data," Working Papers 2019-18, Faculty of Economic Sciences, University of Warsaw.
    2. Pablo A. Mitnik & Anne-Line Helsø & Victoria L. Bryant, 2020. "Inequality of Opportunity for Income in Denmark and the United States: A Comparison Based on Administrative Data," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, National Bureau of Economic Research, Inc.
    3. Niklas Isaak & Philipp Jäger & Robin Jessen, 2021. "Die Verteilung der Steuer- und Abgabenlast [The Distribution of the Tax and Social Security Burden]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(4), pages 284-289, April.
    4. Pasch, Sandra & Dany-Knedlik, Geraldine, 2020. "On the cyclicity of the income distribution," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224654, Verein für Socialpolitik / German Economic Association.
    5. repec:ajk:ajkpbs:001 is not listed on IDEAS
    6. Judith Niehues & Maximilian Stockhausen & Andreas Peichl & Charlotte Bartels & Mario Bossler & Bernd Fitzenberger & Arnim Seidlitz & Moritz Kuhn & Till Baldenius & Sebastian Kohl & Moritz Schularick &, 2020. "Ungleichheit unter der Lupe – neue politische Antworten auf ein bekanntes Thema," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(02), pages 03-26, February.
    7. Charlotte Bartels & Carsten Schroeder, 2020. "The role of rental income, real estate and rents for inequality in Germany," Working Papers 7, Forum New Economy.
    8. Brzezinski, Michal & Sałach, Katarzyna, 2021. "Nierówności dochodowe i majątkowe w Polsce: nowe wyniki wykorzystujące dane pozaankietowe," SocArXiv s43yr, Center for Open Science.
    9. Zhu, Junyi & Steiner, Viktor, 2020. "A Joint Top Income and Wealth Distribution," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224651, Verein für Socialpolitik / German Economic Association.

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