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Two Decades of Top Income Shares in Honduras

Author

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  • Del Carmen,Giselle
  • Garriga,Santiago
  • Nuñez,Wilman
  • De Gouvea Scot De Arruda,Thiago

Abstract

This paper presents distributional national accounts for Honduras over 2003–2019, using survey microdata, administrative tax records, and national account aggregates. It assembles comprehensive data on formal income for high-income individuals, including information on corporate shareholders, which allows corporate profits to be assigned to their owners. The estimates suggest a high and persistent inequality in the country: the top 1 percent highest earners received approximately 30 percent of the total income over the period, placing Honduras among the most unequal countries in the world. Undistributed corporate profits are the overwhelming income source at the very top of the distribution, highlighting its importance in the measurement of income inequality. Finally, using a panel of tax records, the paper also documents that not only is inequality persistent, but the same individuals are often observed at the top, suggesting that the observed inequality has deep roots.

Suggested Citation

  • Del Carmen,Giselle & Garriga,Santiago & Nuñez,Wilman & De Gouvea Scot De Arruda,Thiago, 2024. "Two Decades of Top Income Shares in Honduras," Policy Research Working Paper Series 10722, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10722
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    File URL: http://documents.worldbank.org/curated/en/099302403182435474/pdf/IDU116a7803b1e2ff144e6196f8152799cced739.pdf
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