Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/65986 
Year of Publication: 
2010
Series/Report no.: 
ISER Working Paper Series No. 2010-13
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
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.
Subjects: 
Income
Microsimulation
Poverty
Inequality
Europe
JEL: 
C81
D31
I32
Document Type: 
Working Paper

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