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Trends in Income Inequality, Pro-Poor Income Growth and Income Mobility

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  • Jenkins, Stephen P.

    ()
    (London School of Economics)

  • Van Kerm, Philippe

    ()
    (CEPS/INSTEAD)

Abstract

We provide an analytical framework within which changes in income inequality over time are related to the pattern of income growth across the income range, and the reshuffling of individuals in the income pecking order. We use it to explain how it was possible both for “the poor” to have fared badly relatively to “the rich” in the USA during the 1980s (when income inequality grew substantially), and also for income growth to have been pro-poor. Income growth was also pro-poor in Western Germany, more so than in the USA, and inequality did not rise as much.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 904.

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Length: 22 pages
Date of creation: Oct 2003
Date of revision:
Publication status: published in: Oxford Economic Papers, 2006, 58 (3), 531-548
Handle: RePEc:iza:izadps:dp904

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Keywords: pro-poor growth; income mobility; income growth; inequality; reranking;

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References

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  7. Roland Benabou & Efe A. Ok, 2001. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," NBER Working Papers 8431, National Bureau of Economic Research, Inc.
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  18. Kai-yuen Tsui, 1996. "Growth-equity decomposition of a change in poverty: An axiomatic approach," Economics Letters, Elsevier, vol. 50(3), pages 417-423, March.
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  21. Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May.
  22. Kuan Xu & Lars Osberg, 2000. "The Social Welfare Implications, Decomposability, and Geometry of the Sen Family of Poverty Indices," Department of Economics at Dalhousie University working papers archive sendeco, Dalhousie, Department of Economics.
  23. Esfandiar Maasoumi & Mark Trede, 2001. "Comparing Income Mobility In Germany And The United States Using Generalized Entropy Mobility Measures," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 551-559, August.
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