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Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?

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  • René Böheim
  • Stephen P. Jenkins

Abstract

Most UK surveys, including those used each year to derive the official UK income distribution statistics ('Households Below Average Income'), provide measures of current household income rather than annual household income, which is the measure used in most other countries. Using British Household Panel Survey data, we examine whether estimates of Britain's income distribution and its trends are sensitive to the choice between current and annual income measures. The main finding is that current and annual income measures provide remarkably similar results. We explore why.

Suggested Citation

  • René Böheim & Stephen P. Jenkins, 2000. "Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?," Discussion Papers of DIW Berlin 214, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp214
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    Cited by:

    1. Schröder, Carsten, 2012. "The sensitivity of distributional measures to the reference period of income," Kiel Working Papers 1777, Kiel Institute for the World Economy (IfW Kiel).
    2. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    3. Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 221(3), pages 285-308.
    4. Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
    5. Suzie Ballantyne & Simon Chapple & David C. Maré & Jason Timmins, 2003. "Movements Into and Out of Child Poverty in New Zealand: Results from the Linked Income Supplement," Working Papers 03_13, Motu Economic and Public Policy Research.
    6. Dickens & David T. Ellwood, 2004. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 313-370, National Bureau of Economic Research, Inc.
    7. Carsten Schröder & Yolanda Golan & Shlomo Yitzhaki, 2014. "Inequality and the time structure of earnings: evidence from Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 393-409, September.
    8. Francesco Devicienti, 2002. "Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997," Journal of Economics, Springer, vol. 77(1), pages 307-340, December.
    9. Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," SOEPpapers on Multidisciplinary Panel Data Research 3, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Alison Aughinbaugh & Maury Gittleman, 2003. "Does Money Matter?: A Comparison of the Effect of Income on Child Development in the United States and Great Britain," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
    11. Frick Joachim R. & Grabka Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung. The Impact of Imputed Rent on the Personal Distribution of Income," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(3), pages 285-308, June.
    12. M. Asghar ZaidiKlaas de Vos & CentER Applied Research & Tilburg University & The Netherlands, 2002. "Income Mobility of the Elderly in Great Britain and The Netherlands: A Comparative Investigation," Economics Series Working Papers 107, University of Oxford, Department of Economics.
    13. Felix Büchel & Joachim R. Frick & Asghar Zaidi, 2004. "Income Mobility in Old Age in Britain and Germany," CASE Papers 089, Centre for Analysis of Social Exclusion, LSE.
    14. Whitehouse, Edward, 2000. "How Poor are the Old? A Survey of Evidence from 44 Countries," MPRA Paper 14177, University Library of Munich, Germany.
    15. Dean Hyslop & Suresh Yahanpath, 2005. "Income Growth and Earnings Variations in New Zealand, 1998—2004," Treasury Working Paper Series 05/11, New Zealand Treasury.
    16. Disney, Richard & Whitehouse, Edward, 2001. "Cross-country comparisons of pensioners’ incomes," MPRA Paper 16345, University Library of Munich, Germany.

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