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Labor Mobility, Job Preferences, and Income Distribution

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  • Alvaro Montenegro

Abstract

A model is presented to illustrate the role of labor mobility in income distribution. Worker preference for different occupations and wage comparisons are combined to determine the allocation of labor between sectors and to trace the behavior of the Gini coefficient as mobility increases. The Gini coefficient fails to fall monotonically with increasing labor mobility, making its interpretation ambiguous. It is also shown that the Gini coefficient has a lower nonzero limit, a fact compatible with empirical findings.

Suggested Citation

  • Alvaro Montenegro, 2003. "Labor Mobility, Job Preferences, and Income Distribution," LABOUR, CEIS, vol. 17(1), pages 93-102, March.
    • Handle: RePEc:bla:labour:v:17:y:2003:i:1:p:93-102
    DOI: 10.1111/1467-9914.00223
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    References listed on IDEAS

    as
    1. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
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    3. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
    4. Lauchlin Currie & Roger Sandilands, 1997. "Implications of an Endogenous Theory of Growth in Allyn Young's Macroeconomic Concept of Increasing Returns," History of Political Economy, Duke University Press, vol. 29(3), pages 413-443, Fall.
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