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Samling Errors and Cross-Country Comparisons of Income Inequality

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Abstract

The growing interest in cross-national comparisons of income inequality is primarily a result of the establishment of the Luxembourg Income Study (LIS) database and the wide range of studies on income inequality based on LIS data. These studies suffer, however, from a major weakness since sampling errors neither are reported nor taken into account when nations are ranked according to estimates of the Gini coefficient or some alternative measure of inequality. This paper discusses the impact of accounting for sampling error when making comparisons of income inequality across nations.

Suggested Citation

  • Rolf Aaberge, 1999. "Samling Errors and Cross-Country Comparisons of Income Inequality," Discussion Papers 252, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:252
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    1. Aaberge, Rolf, 1997. "Interpretation of changes in rank-dependent measures of inequality," Economics Letters, Elsevier, vol. 55(2), pages 215-219, August.
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    Cited by:

    1. Aaberge, Rolf & Langørgen, Audun & Mogstad, Magne & Østensen, Marit, 2008. "The Impact of Local Public Services and Geographical Cost of Living Differences on Poverty Estimates," IZA Discussion Papers 3686, Institute of Labor Economics (IZA).
    2. Magne Mogstad, 2007. "Measuring Income Inequality under Restricted Interpersonal Comparability," Discussion Papers 498, Statistics Norway, Research Department.
    3. Erling Røed Larsen, 2002. "Consumption Inequality in Norway in the 80s and 90s," Discussion Papers 325, Statistics Norway, Research Department.

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    More about this item

    Keywords

    Income inequiality; the Gini coefficient; sampling errors;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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