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Income mobility and economic inequality from a regional perspective

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Abstract

A necessary condition for mobility to reduce the popular desire for redistribution is a significant positive correlation between inequality and mobility. In Prieto et al. (2008), a significant positive relationship was found at the national level. The objective of this study is to establish empirically whether such a relationship is maintained at the regional level. The indices are calculated for the set of EU regions using the European Community Household Panel survey. Total mobility is decomposed into three terms: growth, dispersion and exchange. We show that this positive relationship is robust by estimating a hierarchical linear model.

Suggested Citation

  • Juan Prieto Rodríguez & Juan Gabriel Rodríguez & Rafael Salas, 2010. "Income mobility and economic inequality from a regional perspective," Journal of Applied Economics, Universidad del CEMA, vol. 13, pages 335-350, November.
  • Handle: RePEc:cem:jaecon:v:13:y:2010:n:2:p:335-350
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    Cited by:

    1. Heshmati, Almas & Kim, Jungsuk, 2014. "A Survey of the Role of Fiscal Policy in Addressing Income Inequality, Poverty Reduction and Inclusive Growth," IZA Discussion Papers 8119, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    social mobility; inequality; income distribution;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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