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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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Abstract

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: http://sticerd.lse.ac.uk/case/
Additional Information: © 1998 Frank A. Cowell and Christian Schluter
Library of Congress subject classification: H Social Sciences > HB Economic Theory
H Social Sciences > HA Statistics
Sets: Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Research centres and groups > Centre for Analysis of Social Exclusion (CASE)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: CASE/16
Date Deposited: 27 Apr 2007
URL: http://eprints.lse.ac.uk/2079/

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