Trends in Individual Income Growth: Measurement Methods and British Evidence
AbstractAssessments of whose income growth is the greatest and whose is the smallest are typically based on comparisons of income changes for income groups (e.g. rich versus poor) or income values (e.g. quantiles). However, income group and quantile composition changes over time because of income mobility. To summarize patterns of income growth while also tracking the fortunes of the same individuals, a longitudinal perspective is required. For this case, we develop dominance conditions and summary indices for comparisons of distributions of individual income growth, together with associated methods of estimation and inference. Using these methods and data from the British Household Panel Survey, we study individual income growth for periods between 1991 and 2005. We show that income growth was significantly more pro-poor in the early years of the Labour government than in earlier Conservative years.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5510.
Length: 55 pages
Date of creation: Feb 2011
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- JENKINS Stephen P. & VAN KERM Philippe, 2011. "Trends in individual income growth: measurement methods and British evidence," CEPS/INSTEAD Working Paper Series 2011-21, CEPS/INSTEAD.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- 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-2011-02-26 (All new papers)
- NEP-FDG-2011-02-26 (Financial Development & Growth)
- NEP-LTV-2011-02-26 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fields, Gary S. & Leary, Jesse B. & Ok, Efe A., 2002. "Stochastic dominance in mobility analysis," Economics Letters, Elsevier, vol. 75(3), pages 333-339, May.
- Peter Gottschalk & Robert Moffitt, 2009. "The Rising Instability of U.S. Earnings," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 3-24, Fall.
- Van Kerm, Philippe, 2009. "Income mobility profiles," Economics Letters, Elsevier, vol. 102(2), pages 93-95, February.
- 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.
- Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July.
- Jenkins, Stephen P. & Van Kerm, Philippe, 2003. "Trends in Income Inequality, Pro-Poor Income Growth and Income Mobility," IZA Discussion Papers 904, Institute for the Study of Labor (IZA).
- Jenkins, Stephen P. & Van Kerm, Philippe, 2003. "Trends in income inequality, pro-poor income growth and income mobility," IRISS Working Paper Series 2003-11, IRISS at CEPS/INSTEAD.
- Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
- Lisa M. Dragoset & Gary S. Fields, 2006. "U.S. Earnings Mobility: Comparing Survey-Based and Administrative-Based Estimates," Working Papers 55, ECINEQ, Society for the Study of Economic Inequality.
- Chakravarty, S. R., 1984. "Normative indices for measuring social mobility," Economics Letters, Elsevier, vol. 15(1-2), pages 175-180.
- Brewer, M. & Shephard, A., 2004. "Has Labour made work pay?," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Jenkins, Stephen P, 1997.
"Trends in Real Income in Britain: A Microeconomic Analysis,"
Springer, vol. 22(4), pages 483-500.
- Wen-Hao Chen, 2009. "Cross-National Differences In Income Mobility: Evidence From Canada, The United States, Great Britain And Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 75-100, 03.
- Peter T. Gottschalk & Sheldon Danziger, 2000.
"Income Mobility and Exits from Poverty of American Children, 1970-1992,"
JCPR Working Papers
186, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Peter Gottschalk & Sheldon Danziger, 1999. "Income Mobility and Exits from Poverty of American Children, 1970-1992," Boston College Working Papers in Economics 430, Boston College Department of Economics, revised 15 Feb 2001.
- Jenkins, Stephen P., 2011. "Changing Fortunes: Income Mobility and Poverty Dynamics in Britain," OUP Catalogue, Oxford University Press, number 9780199226436.
- Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," Journal of Economic Inequality, Springer, vol. 1(1), pages 67-99, April.
- Jenkins, Stephen P., 2010.
"The British Household Panel Survey and its Income Data,"
IZA Discussion Papers
5242, Institute for the Study of Labor (IZA).
- Michael Grimm, 2005.
"Removing the anonymity axiom in assessing pro-poor growth,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
113, Ibero-America Institute for Economic Research.
- Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August.
- Daniele Checchi & Valentino Dardanoni, 2002. "Mobility comparisons: does using different measures matter?," Departmental Working Papers 2002-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Fields, Gary S & Ok, Efe A, 1999. "Measuring Movement of Incomes," Economica, London School of Economics and Political Science, vol. 66(264), pages 455-71, November.
- B. Essama-Nssah & Peter J. Lambert, 2009. "Measuring Pro-Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, 09.
- Brewer, M. & Muriel, A. & Phillips, D. & Sibieta, L., 2007. "Poverty and Inequality in the UK: 2008," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Trends in Individual Income Growth: Measurement Methods and British Evidence
by maximorossi in NEP-LTV blog on 2011-02-28 21:11:19
- Thomas Groll & Peter J. Lambert, 2011. "The pro-poorness, growth and inequality nexus: Some findings from a simulation study," Working Papers 214, ECINEQ, Society for the Study of Economic Inequality.
- V. Peragine & F. Palmisano & P. Brunori, 2011.
"Economic growth and equality of opportunity,"
0037, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Oct 2011.
- Paul Gregg & Rosanna Scutella & Claudia Vittori, 2012. "Earnings Mobility and Inequality: An Integrated Framework," Melbourne Institute Working Paper Series wp2012n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.