Measuring inequality and dependences between income sources with administrative data and survey data

Producción CientíficaThis paper aims at analyzing the effects of changing from survey to administrative data on inequality and its structure. Taking advantage of the Spanish Survey on Income and Living Conditions (ECV) that continued asking households for their income despite assigning them the income data provided by the Tax Agency and the Social Security administration, different analyses are carried out. By using copula functions we pay special attention to the effect on the dependences between income sources. We find a significant growth in the disposable income of households when using administrative data. The incomes of both tails of the distribution increase considerably more than middle incomes, and administrative data produce significantly lower levels of inequality. Using administrative instead of survey data also gives rise to changes in the structure of inequality by income sources, rising the contribution of capital income. Both methods of data collection also produce significant differences in the observed dependences between income sources.Economía Aplicad

A note on nonparametric estimation of copula-based multivariate extensions of Spearman’s rho

Producción CientíficaSchmid and Schmidt (2007) proposed copula-based nonparametric estimators for some multivariate extensions of Spearman’s rho. In this paper, we show that two of those estimators are inappropriate since they can take values out of the parameter space and we discuss alternative proposals.Ministerio de Economía, Industria y Competitividad (ECO2012-32178)Ministerio de Economía, Industria y Competitividad (ECO2012-32401)Junta de Castilla y León (programa de apoyo a proyectos de investigación – Ref. VA066U13

The influence of macroeconomic factors on personal income distribution in developing countries: a parametric modelling approach

This article examines the influence of macroeconomic factors on personal income distribution in developing countries using a parametric modelling approach. The technique is based on the selection and estimation of a theoretical parametric model (a Dagum distribution) which fits accurately to the empirical income distributions of the countries examined. The parameters of the model specifically related to inequality are subsequently used as dependent variables in econometric models in order to examine the impact that certain macroeconomic variables (GDP growth, inflation, employment and real interest rates) have on inequality. The results reveal that GDP growth, employment rate and real interest rate are the macroeconomic factors with greater impact in shaping personal income distribution in developing countries.This study benefits from funding support of the projects CSO2011-29943-C03-02 of the Ministerio de Educación, Cultura y Deporte and ECO2012-32178 of the Ministerio de Economía y Competitividad of Spain and of the Instituto de Estudios Fiscales

The impact of different data sources on the level and structure of income inequality

This paper aims to analyze the effect on measured inequality and its structure of using administrative data instead of survey data. Different analyses are carried out based on the Spanish Survey on Income and Living Conditions (ECV) that continued to ask households for their income despite assigning their income data as provided by the Tax Agency and the Social Security Administration. Our main finding is that the largest discrepancies between administrative and survey data are in the tails of the distribution. In addition to that, there are clear differences in the level and structure of inequality across data sources. These differences matter, and our results should be a wake-up call to interpret the results based on only one source of income data with caution

La modelización paramétrica de las distribuciones salariales

En este artículo se modeliza mediante modelos paramétricos la distribución salarial en España a partir de los microdatos de la Encuesta de Estructura Salarial. La evidencia obtenida corrobora que, de forma similar a otros ámbitos de análisis en la literatura económica, estas técnicas de modelización son también apropiadas y útiles en el caso de las distribuciones salariales. Entre los principales hallazgos destaca asimismo el hecho de que la distribución beta generalizada de segunda especie es el modelo teórico que mejor se ajusta a la distribución salarial empírica de la economía española.In this article the wage distribution in Spain is modelled using parametric models and microdata from the Encuesta de Estructura Salarial. Our evidence corroborates that, as in other areas in the economic literature, these modelling techniques are also appropriate and useful in the case of wage distributions. An additional noteworthy finding is that the generalized beta distribution of the second kind is the theoretical model that better fits the empirical wage distribution of the Spanish economy.Este trabajo se ha beneficiado de la financiación procedente de los proyectos ECO2012-32178 del Ministerio de Economía y Competitividad y CSO2011-29943-C03-02 del Ministerio de Educación, Cultura y Deporte

Multidimensional measurement of precarious employment using hedonic weights: Evidence from Spain

This article examines the evolution of employment precariousness in Spain based on a new method of constructing multidimensional precarious measures. This methodology resembles the one proposed by Alkire and Foster (2007, 2011) for multidimensional poverty in the framework of the counting approach. The main novelty of the approach adopted resides in the use of hedonic weights derived from the subjective evaluation by employees for the selection of the different dimensions of jobs that make up multidimensional precariousness and the quantification of their relative influence. The evidence obtained reveals that the precariousness of employment created in Spain has intensified significantly in recent years and that the strong temporary nature of employment is the most salient component of this precariousness from a multidimensional perspective.This work was supported by the Ministry of Science, Innovation and Universities (Agencia Estatal de Investigación, AEI) and ERDF (European Union) under grant CSO2017‐86474‐R, by the Spanish Ministry of Economy and Competitiveness under grants CSO2014-55780-C3-2-P and ECO2016-77900-P and by the Autonomous Community of Madrid and European Commission (Project S2015/HUM-3416-DEPOPOR-CM)

A stochastic dominance approach to evaluating pro-poor growth—An application to the Spanish case

Producción CientíficaIn this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.Ministerio de Economía, Industria y Competitividad (project ECO2016-77900-P)Consejería de Educación, Cultura y Deportes de Castilla-La Mancha (project SBPLY/19/180501/000132)Comunidad de Madrid (project H2019/HUM-5793-OPINBI

A review of stochastic dominance methods for poverty analysis

Producción CientíficaStochastic dominance techniques have been mainly employed in poverty analyses to overcome what it is called the multiplicity of poverty indices problem. Moreover, in the multidimensional context, stochastic dominance techniques capture the possible relationships between the dimensions of poverty as they rely upon their joint distribution, unlike most multidimensional poverty indices, which are only based on marginal distributions. In this paper, we first review the general definition of unidimensional stochastic dominance and its relationship with poverty orderings. Then we focus on the conditions of multivariate stochastic dominance and their relationship with multidimensional poverty orderings, highlighting the additional difficulties that the multivariate setting involves. In both cases, we focus our discussion on first- and secondorder dominance, though some guidelines on higher order dominance are also mentioned. We also present an overview of some relevant empirical applications of these methods that can be found in the literature in both univariate and multivariate contexts

Convergencia regional de las distribuciones personales de la renta en España (1990-2003)

Generalmente, el análisis de la convergencia entre países o regiones se suele llevar a cabo comparando el valor medio de las distribuciones de determinadas variables, como el PIB o la renta disponible expresadas en términos per capita. Sin embargo, este tipo de estudios, directamente relacionado con el nivel de bienestar en una sociedad, ofrece una visión parcial del fenómeno de la convergencia, puesto que no tiene en cuenta las disparidades dentro de las regiones o países. La metodología empleada en este artículo permite complementar el enfoque tradicional, considerando simultáneamente aspectos relacionados con criterios tanto de eficiencia como de equidad en cada región. En concreto, se contrasta la dominancia estocástica de primer y segundo orden para analizar la convergencia de las Comunidades Autónomas con datos procedentes de la Encuesta de Presupuestos Familiares de 1990-91 y de la Encuesta de Condiciones de Vida de 2004.convergencia, bienestar, dominancia estocástica

Identifying the multidimen-sional poor in developed countries using relative thresholds: An application to Spanish data

Producción CientíficaIn order to contribute to providing a methodology to ensure objectivity and transparency in the measurement of multidimensional poverty, this paper proposes a new threshold for the identification of the multidimensional poor which is also applicable to each of the dimensions of poverty, suitable for identifying the severely poor in developed countries. This new methodology is applied to analyse the evolution of material deprivation in Spain during the period of economic crisis, comparing the results with those obtained using other traditional approaches.Ministerio de Economıa y Competitividad (Proyect ECO2014-56676-C2-2-P)Ministerio de Economıa y Competitividad (Proyect ECO2012-32178)Comunidad de Madrid (proyect S2015/HUM-3416-DEPOPOR-CM