IDEAS home Printed from https://ideas.repec.org/a/bla/socsci/v105y2024i3p696-708.html

The Dynamics of Inequality and Mobility: A Panel Data Analysis of the Spanish Income Tax

Author

Listed:
  • Juan Ignacio Martín‐Legendre
  • Pablo Castellanos‐García
  • José Manuel Sánchez‐Santos

Abstract

Objective This article aims to analyze the evolution of income inequality and mobility in Spain during the period 1999–2011 by exploiting data from personal income tax returns. Methods To assess the evolution of inequality over the period analyzed, we have used some of the many metrics developed for this purpose, each of which offers a different approach depending on the segment of the income distribution they focus on (Gini coefficient, income shares, generalized entropy index, and the Atkinson class of measures). Results Our results suggest that, after a period of slightly declining income inequality, Spain experienced a rise in inequality in the years immediately preceding the Great Recession, before falling back to precrisis levels. With regard to income mobility, during this period, it was more common for individuals in the middle of the distribution to experience changes, while those at the top and bottom maintained a more stable position. Conclusions The economic boom of the late 1990s and early 2000s, as well as the Great Recession, had a significant impact on income inequality and mobility.

Suggested Citation

  • Juan Ignacio Martín‐Legendre & Pablo Castellanos‐García & José Manuel Sánchez‐Santos, 2024. "The Dynamics of Inequality and Mobility: A Panel Data Analysis of the Spanish Income Tax," Social Science Quarterly, Southwestern Social Science Association, vol. 105(3), pages 696-708, May.
    • Handle: RePEc:bla:socsci:v:105:y:2024:i:3:p:696-708
    DOI: 10.1111/ssqu.13367
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ssqu.13367
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ssqu.13367?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Olga Cant⊙, 2000. "Income Mobility In Spain: How Much Is There?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 85-102, March.
    2. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    3. repec:bla:econom:v:71:y:2004:i:281:p:223-239 is not listed on IDEAS
    4. Naomi E. Feldman & Joel Slemrod, 2007. "Estimating tax noncompliance with evidence from unaudited tax returns," Economic Journal, Royal Economic Society, vol. 117(518), pages 327-352, March.
    5. Auten, Gerald & Gee, Geoffrey, 2009. "Income Mobility in the United States: New Evidence From Income Tax Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(2), pages 301-328, June.
    6. Erik Hurst & Geng Li & Benjamin Pugsley, 2014. "Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 19-33, March.
    7. St鰨ane Bonhomme & Laura Hospido, 2013. "Earnings inequality in Spain: new evidence using tax data," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4212-4225, October.
    8. Brindusa Anghel & Henrique Basso & Olympia Bover & José María Casado & Laura Hospido & Mario Izquierdo & Ivan A. Kataryniuk & Aitor Lacuesta & José Manuel Montero & Elena Vozmediano, 2018. "Income, consumption and wealth inequality in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 9(4), pages 351-387, November.
    9. Florence Jaumotte & Subir Lall & Chris Papageorgiou, 2013. "Rising Income Inequality: Technology, or Trade and Financial Globalization?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(2), pages 271-309, June.
    10. 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.
    11. Paul Gregg & Claudia Vittori, 2008. "Exploring Shorrocks Mobility Indices Using European Data," The Centre for Market and Public Organisation 08/206, The Centre for Market and Public Organisation, University of Bristol, UK.
    12. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    13. Era Dabla-Norris & Kalpana Kochhar & Nujin Suphaphiphat & Franto Ricka & Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality; A Global Perspective," IMF Staff Discussion Notes 15/13, International Monetary Fund.
    14. Cowell, Frank & Litchfield, Julie & Mercader-Prats, Magda, 1999. "Income inequality comparisons with dirty data: the UK and Spain during the 1980s," LSE Research Online Documents on Economics 2240, London School of Economics and Political Science, LSE Library.
    15. Rolf Aaberge & Anders Björklund & Markus Jäntti & Mårten Palme & Peder J. Pedersen & Nina Smith & Tom Wennemo, 2002. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 443-469, December.
    16. Ms. Era Dabla-Norris & Ms. Kalpana Kochhar & Mrs. Nujin Suphaphiphat & Mr. Franto Ricka & Ms. Evridiki Tsounta, 2015. "Causes and Consequences of Income Inequality: A Global Perspective," IMF Staff Discussion Notes 2015/013, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. P. Jenkins, Stephen & Jäntti, Markus, 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    2. Andrea Colciago & Anna Samarina & Jakob de Haan, 2019. "Central Bank Policies And Income And Wealth Inequality: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 33(4), pages 1199-1231, September.
    3. Aart Kraay & Roy Weide, 2022. "Measuring intragenerational mobility using aggregate data," Journal of Economic Growth, Springer, vol. 27(2), pages 273-314, June.
    4. Anjan K. Saha & Vinod Mishra & Russell Smyth, 2021. "Financial development and top income shares in OECD countries," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 952-978, January.
    5. Hyungna Oh & Yun Jeong Choi, 2018. "Limited Income Mobility: Empirical Evidence from Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 665-687, July.
    6. Nicolas Hérault & Dean Hyslop & Stephen P. Jenkins & Roger Wilkins, 2024. "Rising top‐income persistence in Australia: Evidence from income tax data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 70(1), pages 154-186, March.
    7. Cesaroni, T. & D'Elia, E. & De Santis, R., 2019. "Inequality in EMU: is there a core periphery dualism?," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    8. Adriaan Van Velthoven & Jakob De Haan & Jan-Egbert Sturm, 2019. "Finance, income inequality and income redistribution," Applied Economics Letters, Taylor & Francis Journals, vol. 26(14), pages 1202-1209, August.
    9. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j008g6g0g is not listed on IDEAS
    10. Abebe Hailemariam & Tutsirai Sakutukwa & Ratbek Dzhumashev, 2021. "Long-term determinants of income inequality: evidence from panel data over 1870–2016," Empirical Economics, Springer, vol. 61(4), pages 1935-1958, October.
    11. Denisa Maria Sologon & Cathal O'Donoghue, 2009. "Equalizing or Disequalizing Lifetime Earnings Differentials?: Earnings Mobility in the EU: 1994-2001," SOEPpapers on Multidisciplinary Panel Data Research 251, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. de Haan, Jakob & Sturm, Jan-Egbert, 2017. "Finance and income inequality: A review and new evidence," European Journal of Political Economy, Elsevier, vol. 50(C), pages 171-195.
    13. Thornton, John & Tommaso, Caterina Di, 2020. "The long-run relationship between finance and income inequality: Evidence from panel data," Finance Research Letters, Elsevier, vol. 32(C).
    14. Cinar Baymul & Kunal Sen, 2020. "Was Kuznets Right? New Evidence on the Relationship between Structural Transformation and Inequality," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1643-1662, July.
    15. Gökhan Ünalan & Özge Çamalan & Hakkı Hakan Yılmaz, 2025. "The Impact of Increases in Housing Prices on Income Inequality: A Perspective on Sustainable Urban Development," Sustainability, MDPI, vol. 17(9), pages 1-21, April.
    16. Vuković, Danijela Lazović & Damijan, Jože P., 2025. "Drivers of income inequality in OECD countries: Testing the Milanovic's TOP hypothesis," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 416-440.
    17. Brei, Michael & Ferri, Giovanni & Gambacorta, Leonardo, 2023. "Financial structure and income inequality," Journal of International Money and Finance, Elsevier, vol. 131(C).
    18. Alfred Ultsch & Jörn Lötsch, 2017. "A data science based standardized Gini index as a Lorenz dominance preserving measure of the inequality of distributions," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-15, August.
    19. Tingyun Chen & Jean-Jacques Hallaert & Alexander Pitt & Haonan Qu & Maximilien Queyranne & Alaina Rhee & Anna Shabunina & Jérôme Vandenbussche & Irene Yackovlev, 2018. "Inequality and Poverty across Generations in the European Union," IMF Staff Discussion Notes 18/01, International Monetary Fund.
    20. Regina Pleninger & Jakob de Haan & Jan‐Egbert Sturm, 2022. "The ‘Forgotten’ middle class: An analysis of the effects of globalisation," The World Economy, Wiley Blackwell, vol. 45(1), pages 76-110, January.
    21. Mark Edem Kunawotor & Godfred Alufar Bokpin & Charles Barnor, 2020. "Drivers of income inequality in Africa: Does institutional quality matter?," African Development Review, African Development Bank, vol. 32(4), pages 718-729, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:socsci:v:105:y:2024:i:3:p:696-708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0038-4941 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.