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Income Inequality Data in Growth Empirics: From Cross-Sections to Time Series

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  • N. GOBBIN
  • G. RAYP

Abstract

As in any other field of applied macro-economic or econometric research, researchers who study income inequality have to look for suitable data. Although most researchers just draw on some ready-made dataset, finding reliable data is not that straightforward and can even be very troublesome. This paper highlights some of the pitfalls in the use of inequality data. We deal with sampling problems, the choice of equivalence scale, one dimensional inequality measures, etc. We also introduce and describe a new secondary dataset on inequality data for a number of OECD countries. The main innovation of the dataset is that it creates the possibility to perform a time series analysis on inequality data. The data bring to the fore an additional problem: non-stationary behaviour of inequality series.

Suggested Citation

  • N. Gobbin & G. Rayp, 2004. "Income Inequality Data in Growth Empirics: From Cross-Sections to Time Series," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/252, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:04/252
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    References listed on IDEAS

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    1. Angus Deaton, 2005. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 1-19, February.
    2. Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July.
    3. N. Gobbin & G. Rayp, 2004. "Inequality and Growth: Does Time Change Anything?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/230, Ghent University, Faculty of Economics and Business Administration.
    4. Jan Hanousek & Dana Hajkova & Randall K. Filer, 2004. "The Other Side of the Moon: The Data Problem in Analyzing Growth Determinants," William Davidson Institute Working Papers Series 2004-682, William Davidson Institute at the University of Michigan.
    5. Atkinson, A.B. & Brandolini, A., 2000. "Promise and Pitfalls in the Use of 'Secondary' Data -Sets: Income Inequality in OECD Countries," Papers 379, Banca Italia - Servizio di Studi.
    6. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, 2013. "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1267-1303.
    7. Mats Johansson & Bjorn Gustafsson, 1997. "In Search for a Smoking Gun: What Makes Income Inequality Vary Over Time in Different Countries?," LIS Working papers 172, LIS Cross-National Data Center in Luxembourg.
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    More about this item

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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