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Are survey data underestimating the inequality of wealth?

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  • Jaanika Merikull
  • Tairi Room

Abstract

This paper uses administrative data from registers and survey data from interviews to analyse unit and item non-response in a wealth survey. It draws on the Estonian Household Finance and Consumption Survey dataset, where the survey data on income and wealth are complemented by information on the same variables from administrative sources for all the people sampled. The results show that the non-response contributes to the underestimation of wealth inequality in the survey data, as the Gini coefficient is underestimated by 6 percentage points and also the top wealth shares are substantially underestimated. The downward bias is originating from item non-response and not from unit non-response. Imputation can address the problems caused by item non-response across most of the net wealth distribution, but does not eliminate the downward bias at the top of the wealth distribution.

Suggested Citation

  • Jaanika Merikull & Tairi Room, 2019. "Are survey data underestimating the inequality of wealth?," Bank of Estonia Working Papers wp2019-05, Bank of Estonia, revised 29 Oct 2019.
    • Handle: RePEc:eea:boewps:wp2019-05
    DOI: 10.23656/25045520/052019/0167
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    References listed on IDEAS

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    15. Sofie R. Waltl & Robin Chakraborty, 2022. "Missing the wealthy in the HFCS: micro problems with macro implications," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 169-203, March.
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    Cited by:

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    2. Michał Brzeziński & Katarzyna Sałach, 2020. "Why wealth inequality differs between post-socialist countries?," Working Papers 2020-14, Faculty of Economic Sciences, University of Warsaw.
    3. Petar Peshev, 2023. "Estimation of the Value, Distribution and Concentration of Wealth in Bulgaria, 1995-2020," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 104-129.

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    More about this item

    Keywords

    wealth distribution; unit non-response; item non-response; participation bias; wealth survey; income survey; Household Finance and Consumption Survey; Estonia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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