Income inequality estimators are biased in small samples, leading generally to an underestimation. This aspect deserves particular attention when estimating inequality in small domains and performing small area estimation at the area level. We propose a bias correction framework for a large class of inequality measures comprising the Gini Index, the Generalized Entropy, and the Atkinson index families by accounting for complex survey designs. The proposed methodology does not require any parametric assumption on income distribution, being very flexible. Design based performance evaluation of our proposal has been carried out using EU-SILC data, their results show a noticeable bias reduction for all the measures. Lastly, an illustrative example of application in small area estimation confirms that ignoring ex-ante bias correction determines model misspecification.

De Nicolò, S., Ferrante, M., Pacei, S. (2024). Small-sample bias correction of inequality estimators in complex surveys. JOURNAL OF OFFICIAL STATISTICS, 40(2), 238-261 [10.1177/0282423x241244920].

Small-sample bias correction of inequality estimators in complex surveys

De Nicolò, S.
Primo
;
Ferrante, M. R.
Secondo
;
Pacei, S.
Ultimo
2024

Abstract

Income inequality estimators are biased in small samples, leading generally to an underestimation. This aspect deserves particular attention when estimating inequality in small domains and performing small area estimation at the area level. We propose a bias correction framework for a large class of inequality measures comprising the Gini Index, the Generalized Entropy, and the Atkinson index families by accounting for complex survey designs. The proposed methodology does not require any parametric assumption on income distribution, being very flexible. Design based performance evaluation of our proposal has been carried out using EU-SILC data, their results show a noticeable bias reduction for all the measures. Lastly, an illustrative example of application in small area estimation confirms that ignoring ex-ante bias correction determines model misspecification.
2024
De Nicolò, S., Ferrante, M., Pacei, S. (2024). Small-sample bias correction of inequality estimators in complex surveys. JOURNAL OF OFFICIAL STATISTICS, 40(2), 238-261 [10.1177/0282423x241244920].
De Nicolò, S.; Ferrante, M.R.; Pacei, S.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/970608
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