What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA
AbstractThe paper presents a decomposition of income mobility indices into two basic sources: Mobility induced by a change of the income distribution shape and mobility induced by a re-ordering of individuals in the income pecking order. The decomposition procedure based on counterfactual distributions results in a decomposition that is applicable to a broad class of mobility measures. Application to income indices with data for Belgium, Western Germany and the USA indicates that reranking has been the major force behind income mobility.
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Bibliographic InfoPaper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2003-03.
Date of creation: Feb 2003
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Publication status: Published in Economica, 2004, vol.71, pp.223-239
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Income mobility ; Distributional change ; Exchange and Structural mobility;
Other versions of this item:
- Philippe Van Kerm, 2004. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," Economica, London School of Economics and Political Science, vol. 71(281), pages 223-239, 05.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
- NEP-LAB-2003-02-24 (Labour Economics)
- NEP-LTV-2003-02-24 (Unemployment, Inequality & Poverty)
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