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Social Indicators Research

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22-11-2016

Correcting the Underestimation of Top Incomes: Combining Data from Income Tax Reports and the Brazilian 2010 Census

Authors: Marcelo Medeiros, Juliana de Castro Galvão, Luísa de Azevedo Nazareno

Published in: Social Indicators Research | Issue 1/2018

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Abstract

To deal with the problem of underestimation of top incomes in household surveys, we propose a methodology to combine the income distributions of the Brazilian 2010 Census (survey) and of 2010 DIRPF (personal income tax reports). The method consists in estimating a system of non-response weights that uses as frame the tax register and is applied to the top of the distribution. After applying this calibration methodology, we decompose inequality income sources. Correcting survey distributions with tax data increases the contribution of non-labor income to inequality, as the case of the Brazilian Census shows. Changes in the methodology do not affect the results substantially.

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Title: Correcting the Underestimation of Top Incomes: Combining Data from Income Tax Reports and the Brazilian 2010 Census
Authors: Marcelo Medeiros
Juliana de Castro Galvão
Luísa de Azevedo Nazareno
Publication date: 22-11-2016
Publisher: Springer Netherlands
Published in: Social Indicators Research / Issue 1/2018
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-016-1498-8

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