Benford’s law and household surveys reported income in Latin America

So, can we trust reported income data from household surveys?

use "survey_data.dta", clearforeach name in ARG BRA CHL CRI ECU MEX URY {
preserve
keep if country_name== "`name'"
keep if labor_income!=. & labor_income>0
g benfords_individual_income = real(substr(string(labor_income), 1, 1))
dis in red "`name'"
tab benfords_individual_income
tab benfords_individual_income if employee==1
tab benfords_individual_income if self_employed==1
restore
}

--

--

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Economist, Msc. Data Science student at Georgetown University.

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Alvaro A. Montoya

Alvaro A. Montoya

Economist, Msc. Data Science student at Georgetown University.

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