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Measuring Income Inequality Across Countries and Over Time: The Standardized World Income Inequality Database

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  • Frederick Solt
Abstract
Objective This article documents wide‐ranging revisions to the Standardized World Income Inequality Database (SWIID), which seeks to maximize the comparability of income inequality estimates for the broadest possible coverage of countries and years. Methods Two k‐fold cross‐validations, by observation and by country, are used to evaluate the SWIID's success in predicting the Luxembourg Income Study (LIS), recognized in the field as setting the standard for comparability. Results The cross‐validations indicate that the new SWIID's estimates and their uncertainty are even more accurate than previous versions, extending its advantage in comparability over alternate income inequality data sets. Conclusion Given its superior coverage and comparability, the SWIID remains the optimum source of data for broadly cross‐national research on income inequality.

Suggested Citation

  • Frederick Solt, 2020. "Measuring Income Inequality Across Countries and Over Time: The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 101(3), pages 1183-1199, May.
    • Handle: RePEc:bla:socsci:v:101:y:2020:i:3:p:1183-1199
    DOI: 10.1111/ssqu.12795
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    References listed on IDEAS

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    1. David K. Jesuit & Vincent A. Mahler, 2010. "Comparing Government Redistribution Across Countries: The Problem of Second‐Order Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1390-1404, December.
    2. A. B. Atkinson & A. Brandolini, 2009. "On data: a case study of the evolution of income inequality across time and across countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(3), pages 381-404, May.
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    4. Vincent Mahler & David Jesuit, 2010. "Comparing Government Redistribution across Countries: The Problem of Second-order Effects," LIS Working papers 546, LIS Cross-National Data Center in Luxembourg.
    5. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 231-242, June.
    6. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries: The case of middle-income countries from the LIS database," WIDER Working Paper Series wp-2018-149, World Institute for Development Economic Research (UNU-WIDER).
    7. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," LIS Working papers 496, LIS Cross-National Data Center in Luxembourg.
    8. David K. Jesuit & Vincent A. Mahler, 2010. "Comparing Government Redistribution Across Countries: The Problem of Second-Order Effects," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1390-1404.
    9. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries," LIS Working papers 756, LIS Cross-National Data Center in Luxembourg.
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