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PL EN


2014 | 12(18) | 105-120

Article title

Impact of outliers on inequality measures – a comparison between Polish Voivodeships

Content

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PL EN

Abstracts

EN
It is known that outlying (large) incomes strongly influence the results of inequality measuring. Thus, there is a question how to deal with such observations. In this paper the rule of excluding observations based on (Q1 – 1.5Q; Q3 + 1.5Q) interval is investigated, for data from household budget survey in 2011, for Polish voivodeships. It is shown that although including more observations obviously changes the values of inequality measures, the relative values of them are surprisingly quite stable, with the rank correlation coefficient never over 0.9.

Contributors

References

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  • Neri L., Gagliardi F., Ciampalini G., Verma V., Betti G., Outliers at upper end of income distribution (EU-SILC 2007), DMQ Working Paper No. 86, November 2009.
  • OECD, The OECD List of Social Indicators, Paris, 1982.
  • Schluter C., On the problem of inference for inequality measures for heavy–tailed distributions, “The Econometrics Journal” 2012, Vol. 15, No. 1, pp. 125–153.
  • Van Kerm P., Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC, IRISS Working Paper Series 2007-01, CEPS/INSTEAD, 2007.

Document Type

Publication order reference

Identifiers

YADDA identifier

bwmeta1.element.desklight-7dc44296-ba98-4ec6-a499-185833e4b395
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