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The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets

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  • Francois, Joseph
  • Rojas-Romagosa, Hugo

Abstract

The inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from secondary inequality datasets in general. We develop techniques to deal with national and international comparability problems intrinsic to such datasets. The result is a new dataset of consistent inequality series, allowing us to explore problems of measurement error. In addition, the new data allow us to perform parametric non linear estimation of Lorenz curves from grouped data. This in turn allows us to estimate the entire income distribution, computing alternative inequality indexes and poverty estimates. Finally, we have used our broadly comparable dataset to examine international patterns of inequality and poverty.

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  • Francois, Joseph & Rojas-Romagosa, Hugo, 2005. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," CEPR Discussion Papers 5214, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5214
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    2. Hugo Rojas-Romagosa & J.F. Francois, 2008. "Reassessing the relationship between inequality and development," CPB Discussion Paper 107.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Francois, J. & Rojas-Romagosa, H., 2004. "Trade Policy and the Household Distribution of Income," Conference papers 331245, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Prados de la Escosura, Leandro, 2006. "Growth, inequality, and poverty in Spain, 1850-2000: evidence and speculation," IFCS - Working Papers in Economic History.WH wp06-04, Universidad Carlos III de Madrid. Instituto Figuerola.
    5. Guillermo Lezama & Henry Willebald, 2020. "Inequality in Pre‐Income Survey Times: A Methodological Proposal," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(4), pages 931-957, December.
    6. Michael A. Nelson & Rajeev K. Goel, 2023. "Spillovers from gender equality onto economic equality: Evidence from 162 nations," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1365-1388, August.
    7. Prados de la Escosura, Leandro, 2007. "Inequality, poverty, and the Kuznets curve In Spain, 1850-2000," IFCS - Working Papers in Economic History.WH wp07-13, Universidad Carlos III de Madrid. Instituto Figuerola.
    8. Axel Dreher & Noel Gaston, 2008. "Has Globalization Increased Inequality?," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 516-536, August.
    9. Carmen Fillat & Joseph Francois, 2004. "National and international income dispersion and aggregate expenditures," Documentos de Trabajo dt2004-06, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    10. Raileanu Szeles, Monica, 2014. "A Multidimensional Approach to the Inclusiveness of economic Growth in the New Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-24, June.
    11. Martin Gassebner & Noel Gaston & Michael J Lamla, 2008. "Relief For The Environment? The Importance Of An Increasingly Unimportant Industrial Sector," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 160-178, April.
    12. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.
    13. Thomas Goda, 2013. "Changes in income inequality from a global perspective: An overview," Working Papers PKWP1303, Post Keynesian Economics Society (PKES).
    14. Hugo Rojas-Romagosa & J.F. Francois, 2008. "Reassessing the relationship between inequality and development," CPB Discussion Paper 107, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Jan Luiten van Zanden & Joerg Baten & Peter Foldvari & Bas van Leeuwen, 2011. "The Changing Shape of Global Inequality - exploring a new dataset," Working Papers 0001, Utrecht University, Centre for Global Economic History.
    16. Jan Luiten Zanden & Joerg Baten & Peter Foldvari & Bas Leeuwen, 2014. "The Changing Shape of Global Inequality 1820–2000; Exploring a New Dataset," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 279-297, June.
    17. Rabindra Bhandari & Gyan Pradhan & Mukti Upadhyay, 2010. "Another empirical look at the Kuznets curve," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 3(2), pages 7-19, December.

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    More about this item

    Keywords

    Income distribution datasets; Inequality trends; Lorenz curve estimation; Poverty estimation;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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