Measuring income mobility with dirty data

Frank Cowell () and Christian Schluter

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: C1 J1 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1998-11
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2079

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