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Inequality, mobility and income distribution comparisons

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  • John Creedy

Abstract

This paper examines the relationship between the cross-sectional and lifetime income distributions using a simple model of relative income mobility. It asks whether cross-sectional comparisons between countries can provide a good indication of lifetime inequality differences if income mobility is similar, and whether lifetime inequality increases by less than cross-sectional inequality if the latter increases as a result of higher mobility. Analytical and simulation methods are used to show that the answer to both questions is negative. Comparisons must allow for different types of mobility, the nature of the age-income profile and the age distribution in each country.

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Bibliographic Info

Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 18 (1997)
Issue (Month): 3 (August)
Pages: 293-302

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Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:293-302

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Cited by:
  1. John Creedy, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Treasury Working Paper Series 13/11, New Zealand Treasury.
  2. David Cantarero & Marta Pascual, 2005. "Regional Differences In Health In Spain - An Empirical Analysis," ERSA conference papers ersa05p551, European Regional Science Association.
  3. Creedy, John & Halvorsen, Elin & Thoresen, Thor, 2012. "Inequality Comparisons in a Multi-Period Framework: The Role of Alternative Welfare Metrics," Working Paper Series 2434, Victoria University of Wellington, Chair in Public Finance.
  4. Ayala, L. & Sastre, M., 2002. "Europe vs. The United States: Is There a Trade-Off Between Mobility and Inequality?," European Economy Group Working Papers 19, European Economy Group.

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