Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

Francesco Figari (), Holly Sutherland, Maria Iacovou and Alexandra Skew

No 2010-13, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: In this paper, we evaluate income distributions in four European countries (Austria, Italy, Spain and Hungary) using two complementary approaches: a standard approach based on reported incomes in survey data, and a microsimulation approach, where taxes and benefits are simulated. These two approaches may be expected to generate slightly different results, particularly in respect of individuals on lower incomes, because benefit receipts tend to be under-reported in survey data, and over-estimated in microsimulation procedures. However, we find that the two approaches do in fact produce reasonably consistent results, in terms of both inequality measures and poverty rates. To the extent that the results differ, we explore the reasons why these differences arise, and suggest directions for future research, in which each approach may inform improvements in the other.

Date: 2010-04-28
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/wp-content/uploads/fi ... ers/iser/2010-13.pdf (application/pdf)

Related works:
Journal Article: Approximations to the Truth: Comparing Survey and Microsimulation Approaches to Measuring Income for Social Indicators (2012)
Working Paper: Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators (2010)
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:ese:iserwp:2010-13

Ordering information: This working paper can be ordered from
Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
https://www.iser.essex.ac.uk/publications/

Access Statistics for this paper

More papers in ISER Working Paper Series from Institute for Social and Economic Research Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK. Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Nears ().