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Do current income and annual income measures provide different pictures of Britain's income distribution?

  • Böheim, René
  • Jenkins, Stephen P.

Most UK surveys, including those used each year to derive the official UK income distribution statistics ('Households Below Average Income'), provides 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.

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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2000-16.

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Date of creation: 01 May 2000
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Publication status: published
Handle: RePEc:ese:iserwp:2000-16
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  1. Andrew Chesher & Christian Schluter, 2001. "Welfare measurement and measurement error," CeMMAP working papers CWP03/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Morris, Nick & Preston, Ian, 1986. "Inequality, Poverty and the Redistribution of Income," Bulletin of Economic Research, Wiley Blackwell, vol. 38(4), pages 275-344, November.
  3. Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-82, December.
  4. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  5. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-43, March.
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