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Title:The impact of income adjustments in the CASEN survey on the measurement of inequality in Chile PDF Logo
Authors:Bravo, David
Valderrama Torres, José A.
Issue Date:2011
Citation:[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 38 [Year:] 2011 [Issue:] 1 [Pages:] 43-65
Abstract:The adjustment of the information obtained from household surveys to make the figures compatible with National Accounts is a non-standard and potentially questionable practice given that it alters the structure of income distribution. This paper analyzes the sensitivity of inequality and poverty indicators to the adjustments made by ECLAC so as to enable a consistency between what is reported by the CASEN survey and the National Accounts figures in Chile. The results reveal that this leads to important changes in the top-end of the distribution and to an overestimation in the main inequality indicators in Chile. Chile looks more unequal in international relative terms due to this adjustment.
Subjects:inequality
poverty
income adjustment
Chile
JEL:C81
D3
I32
N36
O15
Document Type:Article
Appears in Collections:Estudios de Economia, Department of Economics, University of Chile

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