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The Inequality (or the Growth) we Measure: Data Gaps and the Distribution of Incomes

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  • Alvaredo, Facundo
  • De Rosa, Mauricio
  • Flores Beale, 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

  • Alvaredo, Facundo & De Rosa, Mauricio & Flores Beale, Ignacio & Morgan, Marc, 2022. "The Inequality (or the Growth) we Measure: Data Gaps and the Distribution of Incomes," CEPR Discussion Papers 17135, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17135
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    Cited by:

    1. Alvaredo, Facundo & Bourguignon, François & Ferreira, Francisco H. G. & Lustig, Nora, 2023. "Seventy-five Years of Measuring Income Inequality in Latin America," IDB Publications (Working Papers) 13157, Inter-American Development Bank.
    2. Guzzardi, Demetrio & Morelli, Salvatore, 2024. "A New Geography of Inequality: Top Incomes in Italian Regions and Inner Areas," SocArXiv b2yue, Center for Open Science.
    3. Facundo Alvaredo & François Bourguignon & Francisco Ferreira & Nora Lustig, 2024. "Inequality Bands: Seventy-five years of measuring income inequality in Latin America," Working Papers 672, ECINEQ, Society for the Study of Economic Inequality.
    4. De Rosa, Mauricio & Flores, Ignacio & Morgan, Marc, 2024. "More unequal or not as rich? Revisiting the Latin American exception," World Development, Elsevier, vol. 184(C).
    5. Mauricio De Rosa & Joan Vilá, 2022. "Beyond tax-survey combination: inequality and the blurry household-firm border," Documentos de Trabajo (working papers) 22-10, Instituto de Economía - IECON.

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    More about this item

    Keywords

    Income distribution; Data gaps; Surveys; National accounts; Administrative data; Latin america;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • 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

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