Timely Indicators for Inequality and Poverty Using the Italian Labour Force Survey

Abstract

Income distribution measures obtained from standard household income surveys are usually published with a significant delay, of about 2 years. In this paper we propose a methodology for obtaining timelier indicators using the Italian Labour Force Survey (ILFS), a database which collects detailed information not only on individuals’ labour market status, but also on their households and wages. We develop a framework to estimate household labour income and we use it to construct distributional indicators that are available 1 year and half before the standard measures. After discussing the limitations of our approach, we show that the ILFS-based indicators closely track those calculated on standard household income surveys. The suggested indicators are not meant to substitute standard income measures but can offer up-to-date information, with the aim of better monitoring the distributional impact of changing macroeconomic conditions.