DECOMPOSITIONS OF INEQUALITY BY INCOME SOURCE: WHAT THE SURVEY DATA CORRECTED USING TAX DATA TELL US

Slavko Bezeredi (), Nora Mustac () and Ivica Urban
Additional contact information
Slavko Bezeredi: Institute of Public Finance, Zagreb, Croatia
Nora Mustac: Institute of Public Finance, Zagreb, Croatia

Economic Thought and Practice, 2023, vol. 32, issue 2, 549-583

Abstract: Income inequality is decomposed into parts showing the contributions of individual income sources to total income inequality. The main income sources are employment income, self-employment income, capital and property income, social benefits and direct taxes. The results for Croatia are compared with the results for 14 selected EU countries, while the microsimulation model of taxes and social benefits EUROMOD was used as a source of data. The novelty brought by this research is the use of EU-SILC data for Croatia, which were corrected to reflect the top of the income distribution more representatively. The analysis shows that non-representative data offer a biased picture of total income inequality and the relative importance of individual income sources.

Keywords: income inequality; income sources; decomposition; EU-SILC; Gini indeks (search for similar items in EconPapers)
JEL-codes: H20 H22 H23 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/index.php/clanak/448613 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:avo:emipdu:v:32:y:2023:i:2:p:549-583

Ordering information: This journal article can be ordered from
Economic Thought and Practice, University of Dubrovnik, Branitelja Dubrovnika 29, 20000 Dubrovnik
https://emip.unidu.hr/

DOI: 10.17818/EMIP/2023/2.13

Access Statistics for this article

Economic Thought and Practice is currently edited by Nebojsa Stojcic

More articles in Economic Thought and Practice from Department of Economics and Business, University of Dubrovnik Contact information at EDIRC.
Bibliographic data for series maintained by Nebojsa Stojcic ().