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The inequality (or the growth) we measure: data gaps and the distribution of incomes

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  • Gonzalez Alvaredo, Facundo
  • De Rosa, Mauricio
  • Flores, Ignacio
  • Morgan, Marc

Abstract

Large gaps exist between income estimates from inequality studies and macroeconomic statistics, questioning our representation of flows and the relevance of economic growth. We take stock of these gaps by confronting multiple datasets in Latin America, finding that surveys account for around half of macroeconomic income over the past twenty years. Less than half of this gap is due to conceptual differences, the remainder coming from growing measurement issues, which mainly concern capital incomes. Top tails in administrative data and surveys present diverging averages, especially for non-wage incomes, and different shapes. We discuss implications for both inequality levels and trends.

Suggested Citation

  • Gonzalez Alvaredo, Facundo & De Rosa, Mauricio & Flores, Ignacio & Morgan, Marc, 2025. "The inequality (or the growth) we measure: data gaps and the distribution of incomes," LSE Research Online Documents on Economics 128509, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128509
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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