Timely Indicators for Labour Income Inequality

34 Pages Posted: 3 Sep 2019

Date Written: July 18, 2019

Abstract

In this paper I propose a methodology for obtaining timely indicators for labour income inequality using the Italian Labour Force Survey (ILFS), a database which collects detailed information not only on individuals’ labour market status, but also on their households and wages. I develop a framework to estimate household labour income and I use it to construct timely indicators of the labour income distribution, to be used as complements to the standard and richer information provided by the household income surveys, like the Survey on Household Income and Wealth (SHIW) and the EU Statistics on Income and Living Conditions (EU-SILC). I discuss the assumptions and measurement issues underlying the proposed methodology and show that the ILFS-based Gini index closely tracks those calculated on standard household income surveys. The proposed measure is then a tool for monitoring the evolution of labour income inequality following labour market adjustments.

Keywords: inequality, employment

JEL Classification: C53, D31, E24 J21

Suggested Citation

Carta, Francesca, Timely Indicators for Labour Income Inequality (July 18, 2019). Bank of Italy Occasional Paper No. 503, Available at SSRN: https://ssrn.com/abstract=3446755 or http://dx.doi.org/10.2139/ssrn.3446755

Francesca Carta (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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