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There are various perspectives to take on income in which two people looking at the same data can come to two different conclusions. It goes much further than S
by saosebastiao 9y ago
There are various perspectives to take on income in which two people looking at the same data can come to two different conclusions. It goes much further than Simpsons paradox. Simply choosing your windows for comparison differently can cause this: one person chooses to compare 2014 with 2016, and the other chooses to compare 2001 with 2009.
One perspective that is almost universally true going back as far as we have data, is that incomes rise over the lifetime of the individual. Because the bottom 20% today are a completely different set of people as the bottom 20% of tomorrow. And because people strongly to earn more as they get older, the premises of the article hold up.