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

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  • Frank A Cowell
  • Christian Schluter

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.

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  • Frank A Cowell & Christian Schluter, 1998. "Measuring Income Mobility with Dirty Data (published in Ethnic and Racial Studies, 22(3), May 1999)," CASE Papers 016, Centre for Analysis of Social Exclusion, LSE.
  • Handle: RePEc:cep:sticas:016
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    References listed on IDEAS

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    1. A.B. Atkinson & John Hills, 1998. "Exclusion, Employment and Opportunity," CASE Papers case04, Centre for Analysis of Social Exclusion, LSE.
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    13. Geweke, John & Marshall, Robert C & Zarkin, Gary A, 1986. "Mobility Indices in Continuous Time Markov Chains," Econometrica, Econometric Society, vol. 54(6), pages 1407-1423, November.
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