Declining inequality in Latin America? Robustness checks for Peru
Diego Winkelried () and
Bruno Escobar ()
Additional contact information
Bruno Escobar: Universidad del Pacífico
The Journal of Economic Inequality, 2022, vol. 20, issue 1, No 10, 223-243
Abstract Household surveys underreport incomes from the upper tail of the distribution, affecting our assessment about inequality. This paper offers a tractable simulation method to deal with this situation in the absence of extra information (e.g., tax records). The core of the method is to draw pseudodata from a mixture between the income empirical distribution and a parametric model for the upper tail, that aggregate to a preestablished top income share. We illustrate the procedure using Peruvian surveys that, as in the rest of Latin America, have displayed a sustained decrease in the Gini index since the 2000s. In a number of experiments, we impose a larger top income share than the one observed in the data, closer to corrected estimates for less egalitarian neighbors (e.g., Colombia and Chile). We find that even though the point estimates of the Gini index are biased, the corrected indices still decrease in time.
Keywords: Top income share; Income inequality; Latin America (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10888-021-09523-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Declining inequality in Latin America? Robustness checks for Peru (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joecin:v:20:y:2022:i:1:d:10.1007_s10888-021-09523-5
Ordering information: This journal article can be ordered from
Access Statistics for this article
The Journal of Economic Inequality is currently edited by Stephen Jenkins
More articles in The Journal of Economic Inequality from Springer, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().