Following the methodology proposed by Piketty (2014), Kim and Kim (2015) have estimated top income shares in Korea based on income tax data published by the National Tax Service. However, a potential problem with tax data is that tax filers can have f...
Following the methodology proposed by Piketty (2014), Kim and Kim (2015) have estimated top income shares in Korea based on income tax data published by the National Tax Service. However, a potential problem with tax data is that tax filers can have financial incentives to legally manipulate the way to report their income to minimize their tax liabilities. To reconcile the problem, Burkhauser et al. (2012) have used CPS data in the USA to compute top income shares and compared their results with the outcomes based on tax data. We have used the Household Income and Expenditure Survey data published by Statistics Korea to compute top income shares in Korea and compared our results with Kim and Kim (2015)``s results.