Social Sciences
7 years ago

Tax data reveals UK inequality higher than previously thought.

Oxford Economic Papers
Top incomes and inequality in the UK: reconciling estimates from household survey and tax return data
Richard V. Burkhauser, Nicolas Hérault, Stephen P. Jenkins, Roger Wilkins

Paper Summary

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The study compared income inequality estimates in the UK from tax data and household surveys. It found that survey data underestimate top income shares compared to tax data. By adjusting the survey data, the study showed a greater increase in income inequality from the mid-1990s to late 2000s than previously thought. This suggests that income inequality in the UK has been rising more than what was previously reported.