Measuring Income Mobility with Dirty Data (Published in Ethnic and Racial Studies, 22(3), May 1999)

31 Pages Posted: 14 Jul 2008

See all articles by Frank Cowell

Frank Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Christian Schluter

University of Southampton - Division of Economics

Date Written: November 1998

Abstract

We examine the performance of measures of mobility when allowance is made for the possibility of data contamination. We find that 'single-stage' 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 is appropriately specified.

Suggested Citation

Cowell, Frank A. and Schluter, Christian, Measuring Income Mobility with Dirty Data (Published in Ethnic and Racial Studies, 22(3), May 1999) (November 1998). LSE STICERD Research Paper No. CASE016. Available at SSRN: https://ssrn.com/abstract=1158907

Frank A. Cowell (Contact Author)

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 (0)171-955 7277 (Phone)
+44 (0)171-242 2357 (Fax)

Christian Schluter

University of Southampton - Division of Economics ( email )

Southampton, SO17 1BJ
United Kingdom
+44 2380 59 5909 (Phone)
+44 2380 59 3858 (Fax)

HOME PAGE: www.economics.soton.ac.uk/staff/schluter/

Register to save articles to
your library

Register

Paper statistics

Downloads
49
Abstract Views
394
PlumX Metrics