A sensitivity analysis of poverty definitions
We conduct a sensitivity analysis of several estimators related to household income, to explore how some details of the definitions of the variables concerned influence the values of the common estimates, such as the mean, median and (poverty) rates. The purpose of this study is to highlight that some of the operational definitions entail an element of arbitrariness which leaves an undesirable stamp on the inferences made. The analyses use both a cross-sectional and a longitudinal (panel) component of the EU-SILC database.
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