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Title:Approximations to the truth: Comparing survey and microsimulation approaches to measuring income for social indicators PDF Logo
Authors:Figari, Francesco
Iacovou, Maria
Skew, Alexandra
Sutherland, Holly
Issue Date:2010
Series/Report no.:EUROMOD Working Paper EM3/10
Abstract:This paper evaluates 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. Given that benefit receipts tend to be under-reported in survey data, and over-estimated in microsimulation procedures, we may expect the two approaches to generate slightly different results. In fact, we find reasonably consistent results. To the extent that the results differ, we explore why these differences occur, and suggest directions for future research, where each approach may inform improvements in the other.
Subjects:income
microsimulation
poverty
inequality
Europe
JEL:C81
D31
I32
Document Type:Working Paper
Appears in Collections:EUROMOD Working Paper Series, Institute for Social and Economic Research (ISER), University of Essex

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