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Cross-National Differences In Income Mobility: Evidence From Canada, The United States, Great Britain And Germany

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  • Wen-Hao Chen

Abstract

Using a standardized dataset, this paper compares the differences in income mobility among four countries-Canada, the United States, Great Britain and Germany-during the 1990s and early 2000s. The results suggest that, in general, there exist diverse levels of income mobility across the four countries. Although the precise magnitudes of the differences are sensitive to the measurement method used, incomes in Britain are by far the most mobile. Our findings also reveal country-specific driving forces that underlie income mobility. The stabilizing effects of government transfers are most pronounced in Canada. In Germany, it is the progressive tax system that offsets earnings variations and results in smaller changes in longitudinal incomes. Moreover, we also discover that demographic factors provided only limited explanation of differences in income mobility. Copyright 2009 The Author. Journal compilation 2009 International Association for Research in Income and Wealth Published by Blackwell Publishing.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 55 (2009)
Issue (Month): 1 (03)
Pages: 75-100

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Handle: RePEc:bla:revinw:v:55:y:2009:i:1:p:75-100

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Cited by:
  1. JENKINS Stephen P. & VAN KERM Philippe, 2011. "Trends in individual income growth: measurement methods and British evidence," CEPS/INSTEAD Working Paper Series 2011-21, CEPS/INSTEAD.
  2. Gulgun Bayaz-Ozturk & Richard V. Burkhauser & Kenneth A. Couch, 2012. "Consolidating the Evidence on Income Mobility in the Western States of Germany and the U.S. from 1984-2006," NBER Working Papers 18618, National Bureau of Economic Research, Inc.
  3. Nicholas Rohde & Kam Ki Tang & Prasada Rao, 2011. "Income volatility and insecurity in the U.S., Germany and Britain," Discussion Papers Series 434, School of Economics, University of Queensland, Australia.

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