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Timely indicators for labour income inequality

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  • Franecsca Carta

    (Bank of Italy)

Abstract

In this paper I propose a methodology to obtain timely indicators for labour income inequality using the Italian Labour Force Survey (ILFS), a database which collects detailed information not only on individuals� labour market status, but also on their households and wages. I develop a framework to estimate household labour income and I use it to construct timely indicators of the labour income distribution, to be used as complements to the standard and richer information provided by the household income surveys, like the Survey on Household Income and Wealth (SHIW) and the EU Statistics on Income and Living Conditions (EU-SILC). I discuss the assumptions and measurement issues underlying the proposed methodology and show that the ILFS-based Gini index closely tracks those calculated on standard household income surveys. The proposed measure is then a tool for monitoring the evolution of labour income inequality following labour market adjustments.

Suggested Citation

  • Franecsca Carta, 2019. "Timely indicators for labour income inequality," Questioni di Economia e Finanza (Occasional Papers) 503, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_503_19
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2019-0503/QEF_503_19.pdf
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    References listed on IDEAS

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    1. Andrea Brandolini & Eliana Viviano, 2016. "Behind and beyond the (head count) employment rate," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(3), pages 657-681, June.
    2. Giulia Bovini & Eliana Viviano, 2018. "The Italian "employment-rich" recovery: a closer look," Questioni di Economia e Finanza (Occasional Papers) 461, Bank of Italy, Economic Research and International Relations Area.
    3. Emanuele Ciani & Roberto Torrini, 2019. "The Geography of Italian Income Inequality: Recent Trends and the Role of Employment," Politica economica, Società editrice il Mulino, issue 2, pages 173-208.
    4. Andrea Brandolini & Romina Gambacorta & Alfonso Rosolia, 2018. "Inequality amid income stagnation: Italy over the last quarter of a century," Questioni di Economia e Finanza (Occasional Papers) 442, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    inequality; employment;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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