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On the Non-Stationarity of German Income Mobility (and some observations on poverty dynamics)

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  • Christian Schluter

Abstract

The intra-distributional mobility of German income dynamics is analysed using GSOEP. Transition probabilities are found to be time-varying. The tested models comprise various mixed Markov chains in discrete time and a non-stationary mover-stayer model is proposed. In order to explain the observed mobility profiles, we concentrate on one important income class - the poor - instead of the entire transition matrix. Various poverty duration models accommodating unobserved population heterogeneity and duration dependence are examined.

Suggested Citation

  • Christian Schluter, 1997. "On the Non-Stationarity of German Income Mobility (and some observations on poverty dynamics)," STICERD - Distributional Analysis Research Programme Papers 30, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:30
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    7. Ruggles, Patricia & Williams, Roberton, 1989. "Longitudinal Measures of Poverty: Accounting for Income and Assets over Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(3), pages 225-243, September.
    8. Pischke, Jorn-Steffen, 1995. "Measurement Error and Earnings Dynamics: Some Estimates from the PSID Validation Study," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 305-314, July.
    9. Christian Schluter, 1996. "Income Distribution and Inequality in Germany: Evidence from Panel Data," STICERD - Distributional Analysis Research Programme Papers 16, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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    11. Trede, Mark M., 1994. "Statistical inference in mobility measurement: Sex differences in earnings mobility," Discussion Papers in Econometrics and Statistics 4/94, University of Cologne, Institute of Econometrics and Statistics.
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    13. John J. McCall, 1971. "A Markovian of Income Dynamics," UCLA Economics Working Papers 011, UCLA Department of Economics.
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    15. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
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    Cited by:

    1. Francesco Devicienti, 2011. "Estimating poverty persistence in Britain," Empirical Economics, Springer, vol. 40(3), pages 657-686, May.
    2. Pérez-Mayo, Jesús, 2009. "Un análisis dinámico de la privación en España /A Dynamic Analysis of Deprivation for Spain," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 501-522, Agosto.
    3. Francesco Devicienti, 2002. "Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997," Journal of Economics, Springer, vol. 77(1), pages 307-340, December.
    4. Olga Cant⊙, 2000. "Income Mobility In Spain: How Much Is There?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 85-102, March.
    5. PEREZ MAYO Jésus, 2004. "Consistent poverty dynamics in Spain," IRISS Working Paper Series 2004-09, IRISS at CEPS/INSTEAD.
    6. Sheldon Danziger & Markus J ntti, 1999. "Income Poverty in Advanced Countries," LIS Working papers 193, LIS Cross-National Data Center in Luxembourg.

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    More about this item

    Keywords

    Intra-distributional mobility; Markovian models; time-varying transition probabilities; poverty.;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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