Book Description
To the extent that consumption is a fair reflection of real economic well-being, the standard of living of the top 10% is about 3.85 times that of the bottom 10%, on an adult-equivalent basis. [...] Second, the paper will examine the issue of data reliability in the context of the measurement of inequality. [...] The April 1999 report of the Auditor General of Canada pointed out that the underground economy, which it defines as any "legal transactions in goods and services that are 'hidden', resulting in the evasion of taxes," (Canada, Office of the Auditor General, 1999: 2-7) amounted to about 4.5% of GDP. [...] While all of this literature suggests that there are good reasons for concern about the reliability of the income data that researchers use to study inequality, regrettably there does not appear to be a study which compares the size of the underground economy or of unreported income over the past several decades using the same methodology. [...] Unfortunately, there is little mention of the problem of unreported income in any of the studies dealing with the measurement of income inequality in Canada cited above.