Skip to content

Journal Article

Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

Authors

Publication date

04 Feb 2012

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.

Published in

Social Indicators Research

Volume and page numbers

105 , 387 -407

DOI

http://dx.doi.org/10.1007/s11205-010-9775-4

ISSN

16

Subjects

Income Dynamics, Microsimulation, and Taxation

Notes

not held in Res Lib bibliographic reference only


Related publications

  1. Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

    Francesco Figari, Maria Iacovou, Alexandra J. Skew, et al.

  2. Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

    Francesco Figari, Maria Iacovou, Alexandra J. Skew, et al.

  3. Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

    Francesco Figari, Maria Iacovou, Alexandra J. Skew, et al.

    1. Welfare Benefits
    2. Income Dynamics
    3. Microsimulation
  4. Approximations to the truth: comparing survey and microsimulation approaches to measuring income for social indicators

    Francesco Figari, Maria Iacovou, Alexandra J. Skew, et al.

    1. Income Dynamics
    2. Microsimulation

#519315


Research home

Research home

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest