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Frank A Cowell,
Paper No' CASE 016: | Full paper
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Keywords: Mobility measures; robustness; data contamination
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This Paper is published under the following series: CASE Papers
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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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