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Assessing Individual Income Growth

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  • Stephen P. Jenkins
  • Philippe Van Kerm

Abstract

We develop methods for describing distributions of income growth across individuals and for comparing changes in growth distributions over time. The methods include graphical devices (‘income growth profiles’) and dominance conditions, and also summary indices, together with associated methods of estimation and inference. Taking an explicitly longitudinal perspective, our approach illuminates clearly who are the gainers and the losers, and also provides distributionally-sensitive assessments – ones that allow the income growth for different individuals to be weighted differently. Our empirical application shows that the pattern of income growth in Britain over the period 1992–1996 was less pro-poor than that for 1998–2002 and not significantly different from the pattern for 2001–2005.
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Suggested Citation

  • Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
  • Handle: RePEc:bla:econom:v:83:y:2016:i:332:p:679-703
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    File URL: http://hdl.handle.net/10.1111/ecca.12205
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    Cited by:

    1. Palmisano Flaviana & Lo Bue Maria, 2019. "The individual poverty incidence of growth," WIDER Working Paper Series wp-2019-41, World Institute for Development Economic Research (UNU-WIDER).
    2. Creedy, John & Gemmell, Norman, 2017. "Illustrating Income Mobility: Two New Measures," Working Paper Series 6693, Victoria University of Wellington, Chair in Public Finance.
    3. John Voorheis, 2017. "Longitudinal Environmental Inequality and Environmental Gentrification: Who Gains From Cleaner Air?," CARRA Working Papers 2017-04, Center for Economic Studies, U.S. Census Bureau.
    4. John Creedy & Norman Gemmell, 2018. "Income Dynamics, Pro‐Poor Mobility and Poverty Persistence Curves," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 316-328, September.
    5. ANDREOLI Francesco & MUSSINI Mauro & PRETE Vincenzo, 2019. "Urban poverty: Theory and evidence from American cities," LISER Working Paper Series 2019-07, LISER.

    More about this item

    JEL classification:

    • 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, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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