Kiel Working Papers, Kiel Institute for World Economics
No 1777:
The sensitivity of distributional measures to the reference period of income
Carsten Schröder
Abstract: When individual or household incomes are collected for
administrative or scientific surveys, the reference period of income is
sometimes a month, sometimes a quarter, and sometimes a year. This
reference period of income likely affects the shape of the distribution and
derived measures of inequality, poverty, and mobility. Using employment
histories of German residents, the present study systematically explores
the sensitivity of distributional measures to the length of the reference
period of income. Estimates from annual, quarterly and monthly
distributions are provided for one and a half decades, starting from year
1991
Keywords: inequality; poverty; mobility; reference period of income; monthly, quarterly, and annual, distributions; earnings; Germany; (follow links to similar papers)
JEL-Codes: D1,; D31,; I32; (follow links to similar papers)
55 pages, June 2012
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