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Bounding Lifetime Income Using A Cross Section Of Data

Author

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  • Daniel Millimet
  • Nripesh Podder
  • Daniel Slottje
  • Sourushe Zandvakili

Abstract

Measures of income inequality based on current income are well known to overstate lifetime income inequality for two reasons: intracohort mobility and the shape of the age‐earnings profile. Utilizing the concept of age equivalence scales along with varying assumptions concerning the extent of intracohort mobility, the method presented bounds lifetime income inequality using only cross‐sectional data from the CPS, 1967–86. As a result, we are able to analyze changes in lifetime inequality over this period.

Suggested Citation

  • Daniel Millimet & Nripesh Podder & Daniel Slottje & Sourushe Zandvakili, 2003. "Bounding Lifetime Income Using A Cross Section Of Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(2), pages 205-219, June.
  • Handle: RePEc:bla:revinw:v:49:y:2003:i:2:p:205-219
    DOI: 10.1111/1475-4991.00083
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    Cited by:

    1. Marta Pascual, 2006. "The distribution of income over life: an empirical approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(7), pages 431-434.

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