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Measuring income mobility with dirty data

Cowell, Frank and Schluter, Christian (1998) Measuring income mobility with dirty data. CASEpaper (CASE/16). Centre for Analysis of Social Exclusion, London School of Economics and Political Science, London, UK.

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We examine the performance of measures of mobility when allowance is made for the possibility of data contamination. We find that “singlestage” indices – those that are applied directly to a sample from a multivariate income distribution – usually prove to be non-robust in the face of contamination. However, “two-stage” models of mobility – where the distribution is first “discretised” into income intervals and then a transition matrix or other tool is applied – may be robust if the first stage if appropriately specified.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 1998 Frank A. Cowell and Christian Schluter
Divisions: Economics
Centre for Analysis of Social Exclusion
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HA Statistics
Date Deposited: 27 Apr 2007
Last Modified: 24 Dec 2020 00:33

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