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Editor
Rómulo Chumacero
Executive Editor
Andrea Sandoval A.
Detalle / Detail
The impact of income adjustments in the Casen Survey on the measurement of inequality in Chile
Authors: Bravo Urrutia, David; Valderrama Torres, José A.
Vol. 38, Nº 1, pp. 43 - 65 , 2011
Jel: C81, D3, I32, N36, O15

The adjustment of the information obtained from household surveys to make the
figures compatible with National Accounts is a non-standard and potentially
questionable practice given that it alters the structure of income distribution.
This paper analyzes the sensitivity of inequality and poverty indicators to the
adjustments made by ECLAC so as to enable a consistency between what is
reported by the CASEN survey and the National Accounts figures in Chile. The
results reveal that this leads to important changes in the top-end of the distribution
and to an overestimation in the main inequality indicators in Chile. Chile looks
more unequal in international relative terms due to this adjustment.

The adjustment of the information obtained from household surveys to make the
figures compatible with National Accounts is a non-standard and potentially
questionable practice given that it alters the structure of income distribution.
This paper analyzes the sensitivity of inequality and poverty indicators to the
adjustments made by ECLAC so as to enable a consistency between what is
reported by the CASEN survey and the National Accounts figures in Chile. The
results reveal that this leads to important changes in the top-end of the distribution
and to an overestimation in the main inequality indicators in Chile. Chile looks
more unequal in international relative terms due to this adjustment.

Key Words: Inequality, Poverty, Income adjustment, Chile.

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