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The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets

Author

Listed:
  • Joseph Francois

    () (Johannes Kepler University (Linz))

  • Hugo Rojas-Romagosa

    () (CPB (the Hague))

Abstract

The inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from secondary inequality datasets in general. We develop techniques to deal with national and international comparability problems intrinsic to such datasets. The result is a new dataset of consistent inequality series, allowing us to explore problems of measurement error. In addition, the new data allow us to perform parametric non-linear estimation of Lorenz curves from grouped data. This in turn allows us to estimate the entire income distribution, computing alternative inequality indexes and poverty estimates. Finally, we have used our broadly comparable dataset to examine international patterns of inequality and poverty.

Suggested Citation

  • Joseph Francois & Hugo Rojas-Romagosa, 2007. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," IIDE Discussion Papers 20070805, Institue for International and Development Economics.
  • Handle: RePEc:lnz:wpaper:20070805
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jan Luiten van Zanden & Joerg Baten & Peter Foldvari & Bas van Leeuwen, 2011. "The Changing Shape of Global Inequality - exploring a new dataset," Working Papers 0001, Utrecht University, Centre for Global Economic History.
    2. Viaene, Jean-Marie & Zilcha, Itzhak, 2008. "Human Capital and Inequality Dynamics:The Role of Education Technology," Foerder Institute for Economic Research Working Papers 275715, Tel-Aviv University > Foerder Institute for Economic Research.
    3. Jean-Marie Viaene & Itzhak Zilcha, 2009. "Human Capital and Inequality Dynamics: The Role of Education Technology," Economica, London School of Economics and Political Science, vol. 76(304), pages 760-778, October.
    4. Francois, Joseph & Rojas-Romagosa, Hugo, 2004. "Trade Policy and the Household Distribution of Income," CEPR Discussion Papers 4436, C.E.P.R. Discussion Papers.
    5. Carmen Fillat & Joseph Francois, 2004. "National and international income dispersion and aggregate expenditures," Documentos de Trabajo dt2004-06, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    6. Martin Gassebner & Noel Gaston & Michael J Lamla, 2008. "Relief For The Environment? The Importance Of An Increasingly Unimportant Industrial Sector," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 160-178, April.
    7. Prados de la Escosura, Leandro, 2006. "Growth, inequality, and poverty in Spain, 1850-2000: evidence and speculation," IFCS - Working Papers in Economic History.WH wp06-04, Universidad Carlos III de Madrid. Instituto Figuerola.
    8. Raileanu Szeles, Monica, 2014. "A Multidimensional Approach to the Inclusiveness of economic Growth in the New Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-24, June.
    9. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.
    10. Axel Dreher & Noel Gaston, 2008. "Has Globalization Increased Inequality?," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 516-536, August.
    11. Prados De La Escosura, Leandro, 2008. "Inequality, poverty and the Kuznets curve in Spain, 1850–2000," European Review of Economic History, Cambridge University Press, vol. 12(03), pages 287-324, December.
    12. Rabindra Bhandari & Gyan Pradhan & Mukti Upadhyay, 2010. "Another empirical look at the Kuznets curve," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 3(2), pages 7-19, December.
    13. Thomas Goda, 2013. "Changes in income inequality from a global perspective: An overview," Working Papers PKWP1303, Post Keynesian Economics Society (PKES).
    14. Hugo Rojas-Romagosa & J.F. Francois, 2008. "Reassessing the relationship between inequality and development," CPB Discussion Paper 107, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    Income distribution datasets; inequality trends; Lorenz curve estimation; poverty estimation;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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