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

Facundo Alvaredo, Mauricio De Rosa, Ignacio Flores and Marc Morgan

No 17135, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Income distribution; Data gaps; Surveys; National accounts; Administrative data; Latin america (search for similar items in EconPapers)
JEL-codes: D3 E01 N36 (search for similar items in EconPapers)
Date: 2022-03
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Working Paper: The Inequality (or the Growth) we Measure: Data Gaps and the Distribution of Incomes (2022) Downloads
Working Paper: The Inequality (or the Growth) we Measure: Data Gaps and the Distribution of Incomes (2022) Downloads
Working Paper: The Inequality (or the Growth) We Measure: Data Gaps and the Distribution of Incomes (2022) Downloads
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