The inequality (or the growth) we measure: data gaps and the distribution of incomes

Gonzalez Alvaredo, Facundo ORCID: 0009-0002-1530-9150, De Rosa, Mauricio, Flores, Ignacio and Morgan, Marc (2025) The inequality (or the growth) we measure: data gaps and the distribution of incomes. III Working Paper (152). International Inequalities Institute, London School of Economics and Political Science, London, UK.

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Abstract

Large gaps exist between income estimates from inequality studies and macroeconomic statistics, questioning our representation of flows and the relevance of economic growth. We take stock of these gaps by confronting multiple datasets in Latin America, finding that surveys account for around half of macroeconomic income over the past twenty years. Less than half of this gap is due to conceptual differences, the remainder coming from growing measurement issues, which mainly concern capital incomes. Top tails in administrative data and surveys present diverging averages, especially for non-wage incomes, and different shapes. We discuss implications for both inequality levels and trends.

Item Type:	Monograph (Working Paper)
Additional Information:	© 2025 The Authors
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HB Economic Theory
JEL classification:	D - Microeconomics > D3 - Distribution > D30 - General E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Income, and Wealth > N36 - Economic History: Labor and Consumers, Demography, Education, Health, Income and Wealth: Latin America; Caribbean O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America; Caribbean
Date Deposited:	23 Jun 2025 09:57
Last Modified:	23 Jun 2025 09:57
URI:	http://eprints.lse.ac.uk/id/eprint/128509

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