WID.world Data Quality

Introduction

The accurate measurement of income and wealth inequality in WID.world relies on the release of detailed microdata, aggregated tabulations, and survey results by statistical agencies and governments. To make sense of the diverse information that becomes available, we assign data quality grades from 0 to 5 at the observational level for our main series.

The grades vary by year within a country-series combination. The data quality is available for all years in a series. This time dimension enables users to track how data quality evolves year by year, spot improvements, identify gaps in coverage, and compare trends across countries. The detailed criteria for each grade are summarized below.


Table of Contents


WHERE CAN I DOWNLOAD THE DATA QUALITY?

The yearly data quality grades are downloaded by default as an additional column when downloading WID data, either via our user-friendly direct download on the website or via the statsitical software packages in R or STATA. There is no need to request the metadata variables, it downloads by default in WID.data.

▶ Can’t see the new data quality column in your downloads?

If you are downloading data through R or Stata and cannot see the data quality column, you may be using an older version of the WID package. Please uninstall and reinstall the package to access the latest version. The column is included automatically in new downloads and does not need to be requested separately.

QUALITY GRADE DESCRIPTIONS

What does each 0-5 grade signify? The definition depends on the type of variable.

Distributed concepts

Grade Distributed income Distributed wealth Female labour income share
0 Imputed regional average

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No data is available (imputed regional average). This is the lowest-quality category and is used only as a last resort to ensure coverage.

Income inequality-based weighting

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Estimates are based on the observed correlation between income inequality and wealth inequality. Wealth distribution is predicted using an income inequality weighted average of other countries’ wealth distributions, with adjustments for rich-list and national accounts.

Imputed regional average

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No income and employment data is available (imputed regional average). This is the lowest-quality category and is used only as a last resort to ensure coverage.

1 Carry forward or backward

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The value is imputed by carrying the nearest available observation forward or backward, filling short gaps in an otherwise continuous series.

Survey data

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Estimates based solely on survey data, statistically adjusted to approximate missing top-end values. They include rich list and national accounts corrections when available (typically from the 1990s onwards).

Predicted values (OLS) fully imputed

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Values are estimated using an OLS regression model with female shares of wage and self-employment as the main predictors; employment data are drawn from ILO modelled estimates. Unlike grade 2, no observed income data are available for the country, so the full series is model-generated.

2 Interpolation

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Values are estimated by linear interpolation between two known data points, typically for short, internal gaps.

Wealth/estate tabulated tax data, probate microdata, simplified multiplier method

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Wealth distribution estimates are imputed either via a simplified mortality-based multiplier method, from micro inheritance/probate data, or from wealth tax tabulations. These are supplemented by rich list and/or national accounts adjustments when available (typically from the 1990s onwards).

Predicted values (OLS) level-adjusted

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Values are estimated using an OLS regression model with female shares of wage and self-employment as the main predictors; employment data are drawn from ILO modelled estimates. Where observed income data exist for the country, the predicted trend is level-adjusted to match those observations, anchoring the series to real data points.

3 Only one type of source: survey data or tax data.

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Only one type of source is used: either income/consumption surveys, or tax tabulations; the two sources are not jointly available. Tax tabulations are typically the sole source for the historical series (pre 1980) or fiscal income series.

Survey data scaled to national accounts wealth aggregates

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Aggregate wealth figures are derived from national-accounts balancing items, then distributed according to survey shares.

Interpolation

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Values are estimated by linear interpolation between two known data points, typically for short, internal gaps.

4 Tax and survey data

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Tax and survey data are both available, but at least one source is in tabulated (not micro) form.

Mixed model of income capitalization or tabulated wealth/estate tax data and survey data

Read more

Wealth distribution is modeled using a hybrid of either income-capitalization techniques or wealth/estate tax tabulations and survey information, with rich list/national accounts adjustments.

Observed microdata – supplementary source

Read more

Female and male wage and self-employment incomes are derived from a supplementary survey source. These observations are used to extend the time series beyond the years covered by the benchmark source, and are therefore of slightly lower priority but remain grounded in observed microdata.

5 Tax and survey microdata

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Fully integrated micro-level data from tax records and household surveys are available.

Wealth tax microdata or administrative wealth registers

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High-quality wealth microdata from administrative registers or tax declarations, requiring only minor imputations for unobserved assets.

Observed microdata – benchmark source

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Female and male wage and self-employment incomes are directly observed from the benchmark survey source for each country. The benchmark source is selected based on breadth of coverage, methodological consistency, and systematic data collection procedures. These observations represent the highest data quality in the series.

Aggregate concepts

Grade Aggregate income Aggregate wealth* Indices & Exchange Rates Population
0 Imputed regional average

Read more

No data are available. Values are assigned using a regional average or another assumed value solely to ensure coverage. This is the lowest-quality category and is used only as a last resort.

Imputed regional average

Read more

No data are available. Values are assigned using a regional average to ensure coverage. This is the lowest-quality category and is used only as a last resort.

Assumed static value

Read more

No data are available; a static value is assumed. This is the lowest-quality category and is used only as a last resort to ensure coverage.

N/A

Read more

No observation is classified with this score.

1 Carry forward/backward or simple extrapolation

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Values are estimated by extrapolating nearby observations using simple assumptions, such as forward/backward projection, moving averages, regional growth rates, or stable relationships with a related country or former common jurisdiction.

Predicted and extended with regional trend

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Values are estimated by extrapolating nearby OLS predictions with a regional average.

Imputed from related countries

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The value is imputed either directly or by projecting an observation using a secondary variable—or the same variable—as a reference for growth observed in one or more neighbouring countries or countries with historical affiliations. For example, exchange rates may be imputed based on comparisons of Yugoslav GDP values expressed in different currency terms, with the resulting estimates applied to the former Yugoslav countries.

Carry forward or backward

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The value is imputed by projecting the nearest available observation forward or backward, assuming constant relative shares, estimated in a recent reference period, between the country and the aggregate of another country with which it was part of the same jurisdiction at some point in time—for example, the Czech Republic and Slovakia following the dissolution of Czechoslovakia.

2 Predicted values (mainly OLS)

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Values are estimated using statistical or econometric methods, such as OLS regressions on relevant macroeconomic covariates or signal-extraction techniques (e.g., Hodrick–Prescott filtering).

Observed and extended with regional trend

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Values are estimated by extending nearby directly observed data with regional average.

Imputed from domestic indicators

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The value is imputed by projecting an observation using a secondary variable observed within the same country as a reference—for example, a KP PPP exchange rate calculated based on the comparison of GDP values expressed in different currency terms—or by carrying the nearest available observation forward or backward.

Imputed using domestic growth rates

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The value is imputed by projecting the nearest available observation forward or backward, using growth rates or age shares observed in the country’s available totals.

3 Interpolation – Enforce

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Values are estimated by linear interpolation between observed data points or derived through the simultaneous adjustment of macroeconomic identities to ensure internal consistency.

Predicted using macroeconomic covariates

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Values are estimated using OLS regressions on relevant macroeconomic country-specific covariates rather than past observations.

Interpolation

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Values are estimated by linear interpolation between two known data points, filling short internal gaps.

Interpolation

Read more

Values are estimated using linear interpolation between adjacent data points to fill short internal gaps.

4 Observed (historical SNA or academic sources)

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Values are directly sourced from older national accounting frameworks, benchmark academic studies, or historical compilations. Comparability with current standards may be limited.

Observed and extended with OLS prediction

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Values are estimated by extending nearby directly observed data with OLS predictions.

Observed (historical SNA, academic sources, or forecasts)

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Values are sourced from benchmark academic research, historical compilations, forecasts under the latest SNA (e.g., IMF WEO estimates of deflators for some countries in the past year), or from older SNA frameworks.

Observed historical compilations

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Values are directly sourced from historical compilations; comparability with current standards may be limited.

5 Observed (latest SNA)

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Values are directly observed from the most recent national accounts compiled under the latest SNA standards. This is the highest-quality category.

Observed

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Values are directly observed in official balance sheets (from the most recent national accounts compiled under the latest SNA standards), global asset datasets, or validated academic studies. This is the highest-quality category.

Observed (latest SNA)

Read more

Values are directly observed from the most recent national accounts under the latest SNA, representing the highest-quality data.

Observed (UN WPP or latest SNA)

Read more

Values are directly observed from the UN World Population Prospects or from the most recent national accounts compiled under the latest SNA, representing the highest-quality data.

 

Note: The values calculated in-house are derived using accounting identities or assumptions based on already calculated variables. Their grade reflects the quality of the underlying components. See technical note for more details.

*Aggregate wealth grade definitions are currently being revised and may be subject to change.

HOW TO USE DATA QUALITY?

The 0-5 yearly grades enable users to filter their dataset based on the quality of data they desire.

▶ Why are some grades highlighted in blue?

If the 0–5 grades had to be divided into two binary categories, the grades highlighted in blue represent broadly “observed” data points. In our graph visualisation, these grades display the year with a solid line segment, while years with the non-highlighted grades are visualised using a dashed line segment.

One useful application is that users handling distributed income data, for example, can restrict their analysis to years for which the underlying data are observed.

The cut-off grade used for the solid/dashed line visualisation varies by concept:
  • Distributed income variables: Grade ≥ 3
  • Distributed wealth variables: Grade ≥ 1
  • Female labour income share: Grade ≥ 4
  • Aggregate income variables (including Indices, Exchange Rates, Population): Grade ≥ 3
  • Aggregate wealth variables: Grade ≥ 3

For more details, consult the Grade Descriptions.

HOW DOES DATA QUALITY CHANGE OVER TIME?

HOW DO WE SUMMARIZE DATA QUALITY OVER TIME?

To provide an overall picture of data quality for each country and series, we combine the yearly grades into a single score as a weighted average.

▶ How do we construct the average score?

The average quality score is a weighted average of the data quality across years for a given country-series. More recent years receive greater weight, while the influence of older years gradually decreases. This ensures that the score reflects current data quality without disregarding valuable historical information. As such, it reflects both the richness of the underlying data sources and the consistency of coverage over time.

The average score can take non-integer values between 0 and 5, rounded to one decimal place.

For a technical explanation of the score construction and the exact weights attributed in the time-decay weighting, we invite you to consult the technical note (coming soon).

Technical Note

World map of average quality score per countryThe distribution of average quality scores

▶ Click to learn more about country examples in the distributed income graph
Why do France and the United States score so highly?
France and the United States have among the highest-quality pre-tax income series, with scores of 4.7 and 5, respectively. This reflects the extensive use of micro-data from tax records and household surveys, which are available nearly every year and result in most observations receiving grades of 4 or 5. To construct both series, we also take advantage of exceptional historical data coverage, incorporating observed data dating back to 1900 for France and 1820 for the United States. Their underlying sources are therefore both rich in detail and extensive in their coverage over time.
 Why are there no scores between 0 and 1 for the pre-tax income series?

There are no countries with a score between 0 and 1 due to the nature of the distributed income Grade Descriptions. A yearly grade of 0 indicates a regional imputation, which is applied to the country’s entire series. Therefore, if one year is graded 0, all years are graded 0, resulting in a weighted average score of 0. By contrast, a grade of 1 indicates that values have been imputed by carrying forward or backward from a nearby observed year, so the overall score cannot fall below 1.

How does the average score balance historical coverage and recent data efforts? Case studies: India, Japan, and Zambia
The score rewards both historical coverage and recent data production, giving relatively greater weight to recent years in order to reward ongoing data-production efforts. Information from past years remains partially relevant but gradually loses weight as the data become outdated, also avoiding penalizing countries with longer historical series where data quality fades out. For instance, India scores 3.7, partly thanks to the incorporation of extensive historical observed data dating as far back as 1900. Japan, despite significant historical data, scores 1.3 because the series has only three observed data points in the past two decades. By contrast, Zambia’s regular incorporation of newly released survey data contributes to a score of 2.2.

MAKING EXPLICIT WHAT WE KNOW AND DO NOT KNOW

We are aware that there are limitations to our ability to measure the evolution of income and wealth inequality. The objective of WID.world is not to claim to have perfect data series, but rather to make explicit what we know and what we do not know. We aim to combine and reconcile in a systematic manner the different data sources at our disposal: national income and wealth accounts, household income and wealth surveys, fiscal data coming from taxes on income, inheritance and wealth (when they exist), and wealth rankings. None of these data sources and associated methodologies is sufficient in itself. In particular, we stress that our ability to measure the distribution of wealth is limited, and that the different data sources at our disposal are not always fully consistent with one another. But we believe that by combining these data sources in the most explicit manner, we can contribute to a better-informed public debate. The research papers upon which our series are based are available online and present our methods and assumptions in the most transparent manner. All raw data sources and computer codes are released so that our work can be extended and improved by others.

To make the most of the World Inequality Database, we encourage our users to consult a selection of key resources: the Distributional National Accounts (DINA) Guidelines, which provide our methodological framework; the Codes Dictionary; the user-friendly data page for direct data downloads; our GitHub repositories, which contain replication packages and commands for Stata and R; our user-friendly bulk data downloader; and the Methodology page for further resources.