We investigate the reliability of estimated income poverty profiles for Albanian survey data. We find evidence that a significant number of households with low reported incomes have relatively high living standards and are consequently misclassified as poor. We extend the theory of contaminated distributions to incorporate direct measures of well-being as indicators of data contamination, and develop a new nonparametric approach for constructing bounds on conditional poverty rates. We find very large upward biases in measured income poverty under the assumption of independence between living standards and the misreporting propensity, but a wide range of uncertainty under more general conditions.
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Paper provided by Institute for Social and Economic Research in its series ISER working papers with number
2006-35.
Length: 0 Date of creation: 13 Jul 2006 Date of revision: Publication status: published Handle: RePEc:ese:iserwp:2006-35
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