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Nonresponse Bias in Inequality Measurement: Cross‐Country Analysis Using Luxembourg Income Study Surveys
Author(s) -
Hlasny Vladimir
Publication year - 2020
Publication title -
social science quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.482
H-Index - 90
eISSN - 1540-6237
pISSN - 0038-4941
DOI - 10.1111/ssqu.12762
Subject(s) - gini coefficient , inequality , non response bias , economic inequality , demographic economics , percentage point , economics , econometrics , statistics , mathematics , mathematical analysis , finance
Objective This study evaluates the bias to inequality measurement from survey nonrespondents. Methods Sixty‐six Luxembourg Income Study surveys for 38 middle‐ and high‐income countries, encompassing some 900,000 households, are used to derive estimates of the Gini coefficient for countries and selected world regions. Results Household nonresponse typically biases national Ginis downward by 1–8 percentage points. The Gini for North America appears robust to nonresponse, rising by a mere 0.34 percentage points to 44.72 when a correction is applied. The Gini for the European Union Single Market is sensitive to nonresponse, rising by 5.52 percentage points to 37.63. The OECD‐wide Gini rises by 5.93 points to 44.58. Conclusion These results appear consistent with one another and with prior evidence. They suggest that, across countries and selected world regions, household nonresponse biases the Ginis downward by 1–8 percentage points.