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Citation Information

Type Working Paper - ISER Working Paper No. 2006-35
Title Income mis-measurement and the estimation of poverty rates an analysis of income poverty in Albania
Issue 35
Publication (Day/Month/Year) 2006
URL http://www.iser.essex.ac.uk/publications/working-papers/iser/2006-35.pdf
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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