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Análisis económico

On-line version ISSN 2448-6655Print version ISSN 0185-3937

Abstract

ERAZO, María José  and  PAZ, Adonay De. Review and proposal to improve the measurement of income inequality in El Salvador. Anál. econ. [online]. 2021, vol.36, n.91, pp.113-134.  Epub Apr 21, 2021. ISSN 2448-6655.

The most popular measure of income inequality is the Gini coefficient, but in El Salvador the measure of the Gini Coefficient follows a different methodological procedure, which is flawed and hinder the compatibility among countries in the region, besides not reflecting the observed reality. In this document, it is recommended a re-estimation of the official Gini Coefficient that can show the current national situation, and that follows the international recommendations and methodological guidelines. The results show a difference of over 15.0 % between the official measure and the proposal. Moreover, it is recommended the use of the Palma ratio to complement the analysis with alternative inequality measures.

Keywords : inequality; Gini coefficient; Palma ratio; methodological proposal; El Salvador; C13; C18; D63.

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