The Estimation of Poverty Dynamics Using Different Measurements of Household Income
If surveys offer two different measurements of household income, one can use them simultaneously to identify the potential effects of measurement error on the observed-income mobility of the poor. In this paper, the authors investigate transition tables between subsequent income states. Latent Markov models are used to model incorrect classifications of income states. Misclassifications are interpreted as measurement error or spurious changes that are not consistent with a simple transition table model. The empirical results for the German Socio-Economic Panel (GSOEP) show that the observed transition tables overestimate the mobility between poverty states. Copyright 1998 by The International Association for Research in Income and Wealth.
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Volume (Year): 44 (1998)
Issue (Month): 1 (March)
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