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An Integrated Approach for Top-Corrected Ginis

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  • Charlotte Bartels
  • Maria Metzing

Abstract

Household survey data provide a rich information set on income, household context and demographic variables, but tend to under report 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 Gini coefficients 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, 2017. "An Integrated Approach for Top-Corrected Ginis," SOEPpapers on Multidisciplinary Panel Data Research 895, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp895
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    Cited by:

    1. Vladimir Hlasny & Paolo Verme, 2018. "Top Incomes and Inequality Measurement: A Comparative Analysis of Correction Methods Using the EU SILC Data," Econometrics, MDPI, vol. 6(2), pages 1-21, June.
    2. Süß Philipp, 2020. "Regional Market Income Inequality and its Impact on Crime in Germany: A Spatial Panel Data Approach with Local Spillovers," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 387-415, August.
    3. Martín Gonzalez-Eiras & Carlos Sanz, 2018. "Women’s representation in politics: voter bias, party bias, and electoral systems," Working Papers 1834, Banco de España.
    4. Peter Valet & Jule Adriaans & Stefan Liebig, 2019. "Comparing survey data and administrative records on gross earnings: nonreporting, misreporting, interviewer presence and earnings inequality," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(1), pages 471-491, January.

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    More about this item

    Keywords

    Gini coefficient; Top income shares; Survey data; Tax record data; Pareto distribution;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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