Statistical Matching of Administrative and Survey Data : An Application to Wealth Inequality Analysis

Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG geförderten) Allianz- bzw. Nationallizenz frei zugänglich.This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Using population representative survey data from the German Socio-Economic Panel (SOEP) and administrative pension records from the Statutory Pension Insurance, the authors compare four statistical matching techniques to complement survey information on net worth with social security wealth (SSW) information from the administrative records. The unique properties of the linked data allow for a straight control of the quality of matches under each technique. Based on various evaluation criteria, Mahalanobis distance matching performs best. Exploiting the advantages of the newly assembled data, the authors include SSW in a wealth inequality analysis. Despite its quantitative relevance, SSW is thus far omitted from such analyses because adequate micro data are lacking. The inclusion of SSW doubles the level of net worth and decreases inequality by almost 25 percent. Moreover, the results reveal striking differences along occupational lines.Hans Böckler-Foundation, 2006-835-4, Erstellung und Analyse einer konsistenten Geld- und Realvermögensverteilungsrechnung für Personen und Haushalte 2002 und 2007 unter Berücksichtigung der personellen Einkommensverteilun

US poverty studies and poverty measurement: the past twenty-five years

This paper discusses the contribution made by American social scientists to the study of poverty in the past twenty five years. It has three parts. The first concentrates on the measurement of poverty and the fact that the US poverty line remained unchanged in that period despite its increasingly important deficiencies. Proposals to produce a revised poverty line and an Annual Poverty Report are advanced. The second part traces the change of emphasis in US writing about poverty both in terms of academic emphasis and prescription. The final part considers the policy impact of American work on poverty policy beyond America. This paper has been published as: "US Poverty Studies and Poverty Measurement: The past twenty-five years", Social Service Review, March 200

Poverty and inequality in Britain: 2006

This Commentary provides an update on trends in poverty and inequality in Great Britain, based on the latest official government statistics. It uses the same approach to measuring incomes and poverty in Great Britain as the government employs in its Households Below Average Income (HBAI) publication

An integrated approach for the measurement of inequality, poverty, and richness

We propose a new and integrated approach to the measurement of inequality in income distribution, poverty, and richness. The proposed broad set of indicators is neutral and easy to calculate. The method allows a specific interpretation of the results, a decomposition according to households’ characteristics, and an immediate comparison of the results between different countries and time periods. We illustrate the application of the proposed measures and their decomposition based on evidence from Portugal. In addition, we characterize households in accordance with their position in the income distribution.income inequality, poverty, richness, measurement.

Poverty and inequality in Britain: 2005

This Commentary provides an update on trends in poverty and inequality in Great Britain, based on the latest official government statistics. It uses the same approach to measuring incomes and poverty in Great Britain as the government employs in its Households Below Average Income (HBAI) publication

A Coordinated EU Minimum Wage Policy?

[Excerpt] Minimum wages exist in all EU member states, even if, as we shall see in this report, they are set up and established in very different ways. Minimum wages, in fact, can be considered as a cornerstone of the “European Social Model”. Yet, the on-going process of European integration has so far had very little to do with them. Wages are explicitly excluded from the competences of European institutions in the existing treaties, contrary to other areas of work and employment such as working time or health and safety. But in the context of increasing European integration, it seems at least plausible that sooner or later there would be some attempt of coordinating this important aspect of social policy across countries. As we will see in this report, the idea has been discussed at the European level several times since the EU was born, and it seems to be gaining momentum the context of the current economic crisis. Of course, the discussion is by no means settled, as many important European and national actors consider that this area should remain within the remit of national governments and according to national traditions and practices. It is certainly possible that wages, and minimum wages, would remain squarely at the level of national competence in the foreseeable future. Still, it seems like a worthwhile exercise (useful to the debate) to explore what kind of implications would be associated with such a coordination of European minimum wage policy. This is what we will try to do in this report. Without taking ourselves a position, we will try to provide arguments and facts that we hope can be useful in this debate. The report is organized in two big sections. In the first one, we will discuss the theoretical and policy considerations around a coordinated EU minimum wage policy. We will review the social sciences literature on the effects of minimum wages, present a broad picture of the current debates around the coordination of EU minimum wage policy and discuss the institutional difficulties that such a coordination would in our view have to face. In other words, that section will try to provide a balanced summary of the theoretical and policy arguments around this debate. The second big section will try to complement the arguments with some facts, by carrying out a “simple accounting exercise” to evaluate how many and what types of workers would be most affected by a hypothetical coordination of minimum wage policy in the different countries, using a baseline scenario of a single national wage floor of 60% of the median national wages and drawing from the two most recent EU-wide data sources on wages and income. Eurofound was established in 1975 with the mandate of contributing with knowledge to the planning and design of better living and working conditions in Europe. We hope that this report can at least contribute to the debate

Measuring poverty within and between population subgroups

In this paper we propose a decomposition of the Foster, Greer, Thorbecke (FGT) class of poverty indexes into two additive components (namely, poverty within groups and poverty between groups) when both a community-wide threshold and a specific poverty line for each subgroup of population is used. The aim is to suggest an integrated perspective that takes into account both group-specific and overall living conditions, and allows us to throw light on the relative well-being conditions of specific subgroups of population as well as of the entire society. The paper is complemented with an empirical application of the suggested methodology based on the European Community Household Panel.poverty measurement ; FGT index ; subgroup poverty lines