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Comparing Income Mobility In Germany And The United States Using Generalized Entropy Mobility Measures

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Esfandiar Maasoumi
Mark Trede

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Abstract

Based on a derivation of the asymptotic sampling distribution of the generalized entropy mobility measures, this paper provides a statistically rigorous analysis of income mobility in Germany and the United States using the panel data set PSID-SOEP equivalent data file. Several alternative measures of income aggregation, inequality measures, and groupings are considered to establish robustness. We find that, to a high degree of statistical confidence, post-government income mobility is much higher in Germany. Possible reasons for these findings are revealed through disaggregation of the samples by population subgroups. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 83 (2001)
Issue (Month): 3 (August)
Pages: 551-559
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Handle: RePEc:tpr:restat:v:83:y:2001:i:3:p:551-559

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  1. Stephen P. Jenkins & Philippe VanKerm, 2003. "Trends in Income Inequality, Pro-Poor Income Growth and Income Mobility," Discussion Papers of DIW Berlin 377, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  2. Van Kerm, Philippe, 2006. "Comparisons of income mobility profiles," IRISS Working Paper Series 2006-03, IRISS at CEPS/INSTEAD. [Downloadable!]
  3. Glewwe, Paul & Phong Nguyen, 2002. "Economic mobility in Vietnam in the 1990s," Policy Research Working Paper Series 2838, The World Bank. [Downloadable!]
  4. Paul Allanson, 2008. "On the characterisation and measurement of the welfare effects of income mobility from an ex-ante perspective," Discussion Papers 219, University of Dundee, Economic Studies. [Downloadable!]
  5. Stéphane Bonhomme & Jean-Marc Robin, 2008. "Assessing the equalizing force of mobility using short panels: France 1990-2000," CeMMAP working papers CWP02/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  6. Van Kerm, Philippe, 2002. "On the magnitude of income mobility in Germany," IRISS Working Paper Series 2002-03, IRISS at CEPS/INSTEAD. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Myck, Michal & Ochmann, Richard & Qari, Salmai, 2008. "Dynamics of Earnings and Hourly Wages in Germany," IZA Discussion Papers 3751, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Van Kerm, Philippe, 2003. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," IRISS Working Paper Series 2003-03, IRISS at CEPS/INSTEAD. [Downloadable!]
    Other versions:
  10. C. Schluter & D. Van De Gaer, 2008. "Structural Mobility, Exchange Mobility and Subgroup Consistent Mobility Measurement – US–German Mobility Measurements Revisited," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/543, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  11. Rolf Aaberge & Magne Mogstad, 2009. "On the Measurement of Long-Term Income Inequality and Income Mobility," ICER Working Papers 09-2009, ICER - International Centre for Economic Research. [Downloadable!]
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