Inequality Measurement with Grouped Data: Parametric and Non-Parametric Methods

Abstract Grouped data in the form of income shares have conventionally been used to estimate inequality due lack individual records. We present a systematic evaluation performance parametric distributions and non-parametric techniques economic using more than 3300 sets. also provide guidance on choice between these two approaches their estimation, for which we develop GB2group R package. Our results indicate that even simplest models reliable estimates measures. The approach, however, fails represent accurately.