The measurement of structural and exchange income mobility
AbstractChakravarty, Dutta and Weymark (1985) present operational axioms for an ethical index of income mobility that are best suited for a two period world. This paper suggests a decomposition of this index into two terms: (i) an index of structural or snapshot mobility, which captures the welfare effect of differences in the inequality of the cross-section income distributions; and (ii) an index of exchange or rerankings mobility, which captures the welfare impact of rank reversals between the first- and the second-period income distributions. Income inequality reductions and rank reversals are always welfare enhancing. The properties of all the income mobility concepts introduced in the paper do not require any new value judgements beyond the traditional ones. Copyright Kluwer Academic Publishers 2004
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Economic Inequality.
Volume (Year): 2 (2004)
Issue (Month): 3 (September)
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Web page: http://springerlink.metapress.com/link.asp?id=111137
distributional change; exchange and structural mobility; income mobility;
Other versions of this item:
- Ruiz-Castillo, Javier, 2005. "The measurement of structural and exchange income mobility," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/4745, Universidad Carlos III de Madrid.
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