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PRWP

Reproducibility package for Two Decades of Top Income Shares in Honduras

2024
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Reference ID
RR_HND_2024_70-v01
DOI
https://doi.org/10.60572/z2fp-pz42
Author(s)
Giselle Del Carmen, Santiago Garriga, Wilman Nuñez, Thiago Scot
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Feb 13, 2024
Last modified
Mar 20, 2024
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    This paper presents Distributional National Accounts for Honduras over 2003-2019, using survey microdata, administrative tax records and national account aggregates. It assembles comprehensive data on formal income for high-income individuals, including information on corporate shareholders which allows corporate profits to be assigned to their owners. The estimates suggest a high and persistent inequality in the country: the top 1% highest earners receive approximately 30% of the total income over the period, placing Honduras among the most unequal countries in the world. Undistributed corporate profits are the overwhelming income source at the very top of the distribution, highlighting its importance in the measurement of income inequality. Finally, using a panel of tax records, it also documents that not only inequality is persistent, but that the same individuals are often observed at the top, suggesting deep roots to the observed inequality.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/106/download/273/README.pdf
    Reproducibility package (code) for Two Decades of Top Income Shares in Honduras
    Title
    Reproducibility package (code) for Two Decades of Top Income Shares in Honduras
    Date
    2024-01
    Description
    The code in this folder generates the tables and figures in the paper "Two Decades of Top Income Shares in Honduras" by Giselle Del Carmen, Santiago Garriga, Wilman Nuñez and Thiago Scot
    Dependencies
    All dependencies are stored in the ado folder.
    Instructions
    See README in the reproducibility package.
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org

    Reproducibility

    Technology environment

    Reproducibility package was executed on a computer with the following specifications:
    – OS: Windows 11 Enterprise
    – Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
    – Memory available: 4.7 GB
    – Software version: Stata version 17

    Technology requirements

    ~45 min runtime

    Reproduction instructions

    New users need to adjust the directory path specified in the Main do file to reflect their local setup. It is important to highlight that for the 7c_wid_TableComparisons script to function correctly, access should be obtained outside of the World Bank’s network. However, it should be noted that replicators will not be able to directly reproduce the results as presented by the authors without first securing access to the requisite datasets. The data necessary for conducting the reproducibility verification, provided directly by the authors to the replicators of this package, is not included in the reproducibility package.

    Data

    Datasets
    Tax-related datasets from the Honduran Tax Authority
    Name
    Tax-related datasets from the Honduran Tax Authority
    Note
    Located at: Data/Inputs/RawTaxData folder is a repository of tax-related datasets from the Honduran Tax Authority, covering the years 2011 to 2020. This collection includes annual tax records, individual-level gender demographics, Income Tax (ISR) specifics, as well as additional financial data such as rental income and capital gains. Comprehensive documentation regarding the use of each dataset in every part of the analysis is provided in the README file to facilitate understanding.
    Access policy
    Data is confidential and not included in the package. For more information regarding these data, replicators can contact Thiago Scot (tscot@worldbank.org).
    Honduras Household Survey
    Name
    Honduras Household Survey
    Note
    Located at: Data/Inputs/RawSurveyData folder contains a comprehensive set of household survey datasets from Honduras, spanning from the early 1990s to 2013. The analysis conducted in this paper relies on an already clean version of this raw survey data provided by one of the co-authors (Giselle Del Carmen (gdelcarmen@enodohn.com)). The version used in the paper is not the one provided in the link below.
    Access policy
    Data is confidential and not included in the package. For more information regarding these data, replicators can contact Thiago Scot (tscot@worldbank.org).
    Data URL
    https://ine.gob.hn/v4/ephpm/
    World Inequality Database
    Name
    World Inequality Database
    Note
    Located at: Data/AuxData/WID_PPP.dta The World Inequality Database is an extensive source on the historical evolution of the distribution of income and wealth both within and between countries.
    Access policy
    Data is public and the code necessary to produce the file using the wid package is included in the package. This package lets users download data from the online World Inequality Database.
    Data URL
    https://ideas.repec.org/c/boc/bocode/s458357.html
    World Development Indicators
    Name
    World Development Indicators
    Note
    Located at: Data/AuxData. Inflation and GDP data. User can download it at the following link.
    Access policy
    Public but excluded from the reproducibility package
    Data URL
    https://databank.worldbank.org/source/world-development-indicators/Series/FP.CPI.TOTL.ZG, https://databank.worldbank.org/source/world-development-indicators/Series/NY.GDP.DEFL.ZS
    Data statement

    The Honduran tax authority (Servicio de Administración de Rentas) owns the administrative data for this project. The data were made available to the authors exclusively for this research project through collaboration agreements between the corresponding author and the government agency. Individuals interested in accessing the data for replication purposes can contact Thiago Scot (tscot@worldbank.org). The authors will provide reasonable assistance to requests for clarification and replication and support the application for data access through an agreement with SAR. Researchers interested in obtaining the data for their analyses can contact the Servicio de Administracion de Rentas de Honduras (SAR) Edgardo Espinal (eespinal@sar.gob.hn).

    Description

    Output
    Two Decades of Top Income Shares in Honduras
    Type
    Working Paper
    Title
    Two Decades of Top Income Shares in Honduras
    Authors
    Giselle Del Carmen, Santiago Garriga, Wilman Nuñez and Thiago Scot
    Description
    Policy Research Working Paper (PRWP) 10722
    URL
    http://documents.worldbank.org/curated/en/099302403182435474/IDU116a7803b1e2ff144e6196f8152799cced739
    DOI
    https://doi.org/10.1596/1813-9450-10722
    Authors
    Author Affiliation Email
    Giselle Del Carmen Enodo S.A. gdelcarmen@enodohn.com
    Santiago Garriga CEFIP, IIE-FCE, Universidad Nacional de La Plata santiago.garriga@econo.unlp.edu.ar
    Wilman Nuñez Servicio de Administración de Rentas (SAR) wponce@sar.gob.hn
    Thiago Scot World Bank tscot@worldbank.org
    Date of production

    2024-02

    Scope and coverage

    Geographic locations
    Location Code
    Honduras HND
    Keywords
    inequality top income administrative registries Honduras
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    H23 Externalities • Redistributive Effects • Environmental Taxes and Subsidies H2 Journal of Economic Literature (JEL)
    H31 Household H3 Journal of Economic Literature (JEL)
    H71 State and Local Taxation, Subsidies, and Revenue H7 Journal of Economic Literature (JEL)
    I38 Government Policy • Provision and Effects of Welfare Programs I3 Journal of Economic Literature (JEL)
    J31 Wage Level and Structure • Wage Differentials J3 Journal of Economic Literature (JEL)
    J32 Nonwage Labor Costs and Benefits • Retirement Plans • Private Pensions J3 Journal of Economic Literature (JEL)
    J33 Compensation Packages • Payment Methods J3 Journal of Economic Literature (JEL)

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Thiago Scot World Bank tscot@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reyes Retana MRR World Bank Junior Data Scientist
    Date of Production

    2024-01-19

    Document version

    1

    Citation

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