Project description
New statistical methods for the analysis of inequality
Income inequality and socioeconomic disparities remain pressing global challenges. Research often relies on statistical tools to document trends, understand determinants, and evaluate policy responses. The ERC-funded SEMANI project aims to expose the limitations of these common approaches, showing that their structural economic interpretations are only valid under strong (and often unrealistic) assumptions. SEMANI will develop statistical methods that preserve the advantages of existing techniques but rely on weaker assumptions. This will provide more accurate insights into the causes of inequality and the effectiveness of different policy interventions. The project also aims to reinterpret key empirical studies that have shaped public and academic thinking on inequality.
Objective
Rising income inequality and related disparities, accompanied by high persistence of socioeconomic outcomes across generations, have become a major public policy concern around the world. Documenting inequality, understanding its determinants, and evaluating policies with the goal of reducing inequality is an important part of empirical research in economics.
Widely used statistical tools for quantifying the importance of various drivers of inequality and intergenerational mobility have produced influential findings that are directly, and often informally, interpreted in public and political debates. In these debates, causal and economic meaning tends to be attached to the stylized statistical findings without the use of empirically tested structural models.
The first objective of the proposed project is to show theoretically and empirically that these widely used statistical tools generate findings that permit a structural economic interpretation only under very strong assumptions. If these assumptions fail, then the structural interpretation may be misleading, and the findings may not in fact measure what they purport to measure.
The second objective is to develop new, robust statistical tools that are guaranteed to produce findings with a structural interpretation while retaining the attractive features of popular existing approaches, e.g. weak assumptions and data requirements.
Through substantive economic applications of the new statistical methods the project is expected to discover powerful new insights about what drives inequality and what are effective policies for reducing it. In addition, it is expected to provide a new interpretation of a vast and hugely influential body of empirical research, which has shaped our understanding of inequality and has informed policy decisions around the world.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2024-COG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
80539 MUNCHEN
Germany
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.