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Keywords
Capital Income; Inequality; Top Income Shares; Measurement Error
Journal Article
Flores Beale I. (2021). The Capital Share and Income Inequality: Increasing Gaps Between Micro and Macro-Data Journal of Economic Inequality , 19(4), pp. 685-706.
In this paper, the author studies how the contrasting coverage of labour and capital incomes affects inequality estimates. The author uses national accounts as a benchmark to evaluate the scope of household surveys, for a number of countries, and tax data for the United States. Due to both measurement error and conceptual differences, capital income is always more underestimated. In most countries, the gap grows during the last two decades.