Appended Note 3-7 The Method for Additional Treatment of Individual Data

    The samples lacking consistency in the response were excluded from the analysis on individual data of the Income Redistribution Survey. The excluded samples are shown as follows:
1) Households whose compensation of employees, business income, farming and livestock business income, and home labor income were all zero, though the respondent replied that the householder had a job
2) Households whose redistributed income was zero or minus
    In addition, bottom coding and top coding were conducted as each inequality index was under the rather strong influence of the income located at the extreme end of the distribution. Specifically, regarding the income before the equivalence adjustment, households with an income equivalent to or lower than 1% of the average income before the equivalence adjustment were all regarded as having earned an income equivalent to 1% of the average income before the equivalence adjustment, and households with an income more than ten times the median of the income before the equivalence adjustment were all regarded as having earned an income equivalent to ten times the median of the income before the equivalence adjustment. Regarding the equivalence income, households with an income equivalent to or lower than 1% of the equivalence income were all regarded as having earned an income equivalent to 1% of the equivalent income, and households with an income more than ten times the median of the equivalence income were all regarded as having earned an income equivalent to ten times the median of the equivalence income.
    Regarding the method of calculating the initial income and the redistributed income, calculations were conducted according to the Report of Income Redistribution Survey by the Ministry of Health, Labour and Welfare.