The Drivers of Income Mobility in Europe
AbstractIn this paper we study intra-generational income mobility in European countries over the years shortly preceding the outburst of the global crisis. Income mobility plays a crucial role in shaping distributive patterns and is closely related to the capacity of a socio-economic system to provide equality of opportunities and the removal of social impediments. In this study we exploit the longitudinal structure of the EU-Silc database to provide a comprehensive overview of income mobility across 25 European countries, classified into six capitalistic models. After having descriptively analysed heterogeneity in income dynamics by means of alternative mobility measures, we identify the microeconomic drivers of household income mobility, focusing on the role of household and household head demographic, economic and job characteristics. Outcomes reveal that the levels and determinants of mobility differ remarkably in the various institutional models across Europe, particularly regarding demographic attributes, education and temporary/permanent/self-employment positions.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 262.
Length: 27 pages
Date of creation: Sep 2012
Date of revision:
income mobility; household structure; institutional settings; EU-Silc data.;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-CWA-2012-11-17 (Central & Western Asia)
- NEP-EEC-2012-11-17 (European Economics)
- NEP-EUR-2012-11-17 (Microeconomic European Issues)
- NEP-LAB-2012-11-17 (Labour Economics)
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- Magda, Iga & Bukowski, Maciej & Buchholz, Sonia & Lewandowski, Piotr & Chrostek, Paweł & Kamińska, Agnieszka & Lis, Maciej & Potoczna, Monika & Myck, Michał & Kundera, Michał & Oczkowska, Monika, 2013. "Employment in Poland 2011 - Poverty and jobs," MPRA Paper 50185, University Library of Munich, Germany.
- Melissa Engel & Sandra Schaffner, 2012. "How to Use the EU-SILC Panel to Analyse Monthly and Hourly Wages," Ruhr Economic Papers 0390, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Perugini, Cristiano & Hölscher, Jens & Collie, Simon, 2013. "Inequality, credit expansion and financial crises," MPRA Paper 51336, University Library of Munich, Germany.
- Nuno Alves & Carlos Martins, 2014. "Household Income Mobility in the European Union and in Portugal: an Analysis of Labor Market and Demographic Events," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department.
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