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How Income Mobility Affects Income Inequality: US Evidence in the 1980s and the 1990s

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  • Thomas L. Hungerford

    (Congressional Research Service)

Abstract

This study examines income mobility and income inequality in the 1980s and 1990s. The results show that income mobility in the 1980s differed from mobility in the 1990s. Positional mobility was lower in the 1990s than in the 1980s, but income changes were more extensive in the 1990s than in the 1980s. Changing income had an equalizing effect on incomes, which was outweighed by the unequalizing effect of reranking. Hence, income inequality increased in the 1980s and the 1990s. Reranking had a small role in equalizing longer term incomes; income changes appear to be the primary effect in equalizing longer term incomes.

Suggested Citation

  • Thomas L. Hungerford, 2011. "How Income Mobility Affects Income Inequality: US Evidence in the 1980s and the 1990s," Journal of Income Distribution, Ad libros publications inc., vol. 20(1), pages 117-126, March.
    • Handle: RePEc:jid:journl:y:2011:v:20:i:1:p:117-126
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    Cited by:

    1. John Creedy & Elin Halvorsen & Thor O. Thoresen, 2013. "Inequality Comparisons In A Multi-Period Framework: The Role Of Alternative Welfare Metrics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 235-249, June.
    2. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Hai-Anh H. Dang & Michael M. Lokshin & Kseniya Abanokova & Maurizio Bussolo, 2020. "Welfare Dynamics and Inequality in the Russian Federation During 1994–2015," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 812-846, September.
    4. Olga Cantó & David O. Ruiz, 2015. "The Contribution of Income Mobility to Economic Insecurity in the US and Spain during the Great Recession," Research on Economic Inequality, in: Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 109-152, Emerald Group Publishing Limited.
    5. Hyungna Oh & Yun Jeong Choi, 2018. "Limited Income Mobility: Empirical Evidence from Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 665-687, July.
    6. Brett Mullins & David L. Sjoquist & Sally Wallace, 2021. "Earnings mobility and the Great Recession," Social Science Quarterly, Southwestern Social Science Association, vol. 102(6), pages 2718-2732, November.
    7. Katharine Bradbury, 2023. "Family characteristics in U.S. intragenerational family income mobility, 1978–2014," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(1), pages 1-23, March.

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