Bertoni M., Bonfatti A., Dal Bianco C., Weber G., Zantomio F. (2016).
Harmonized net income measures. SHARE Wave 1, SHARE Working
The availability of harmonized income measures across countries and over time is important to analyse income distributions in a cross-country perspective, and to assess the redistributive role of fiscal systems. In this paper we derive harmonized net income measures in SHARE Wave 1, using the tax-benefit micro-simulation model EUROMOD, primarily designed to run on EU-SILC data. In Wave 1 SHARE income variables have been collected before taxes and social contributions, while they were collected after taxes and social contributions in the following waves. Therefore, we derive net income measures for SHARE Wave 1 by running EUROMOD on properly adjusted gross income variables. We validate the gross-to-net conversion procedure by comparing the generated income distributions in SHARE with the ones computed from EU-SILC and other household survey data.