Working paper
Open access

Top Income Adjustments and Inequality: An Investigation of the EU-SILC

Number of pages65
  • Working Papers of the Department of History, Economics and Society – Political Economy; 6/2021
Publication date2021-12-13
First online date2021-12-13

This paper provides a novel assessment of how the World Inequality Database (WID) top income adjustment applied by Blanchet, Chancel, and Gethin (2021) to EU-SILC data for 26 countries over 2003-2017 for Distributional National Accounts purposes affects inequality in equivalised gross and disposable household income. On average the Gini increases by around 2.4 points as a result of the WID-adjustment, for both gross and disposable income, with notable differences across countries, despite limited impact on trends. SILC countries that rely on administrative register data experience relatively small changes in inequality after the WID-adjustment. For recent years, we find that the Gini for ‘non-register' countries increases by 2.8 points on average while in ‘register' countries it does so by 0.9 points. Com- paring with adjustment procedures applied to EU-SILC data in two other recent studies, we find that differences in inequality depend less on the adjustment method and more on whether it relies on external data sources such as tax data. We conclude by discussing the implications for measurement of inequality levels and trends.

  • Inequality
  • Reweighting
  • Survey Representativeness
  • Top incomes.
  • JEL : D31
Citation (ISO format)
CARRANZA, Rafael, MORGAN, Marc, NOLAN, Brian. Top Income Adjustments and Inequality: An Investigation of the EU-SILC. 2021
Main files (1)
Working paper
  • PID : unige:157129

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