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Policy Implications of New Data on Income Mobility

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  • Gardiner, Karen
  • Hills, John

Abstract

The existence of income mobility may moderate concerns about growing inequalities, especially if income mobility has increased. However, the evidence for rising mobility is equivocal and its extent is not enough to offset the growth of cross-sectional inequality. There is a case for greater concern for, and different policies toward, those persistently or recurrently poor than those only temporarily poor, but the data analyzed here suggest that the bulk of low income observations come from the first two categories. Analysis of income mobility may help understand why people's incomes follow different trajectories and how policy might affect this.

Suggested Citation

  • Gardiner, Karen & Hills, John, 1999. "Policy Implications of New Data on Income Mobility," Economic Journal, Royal Economic Society, vol. 109(453), pages 91-111, February.
  • Handle: RePEc:ecj:econjl:v:109:y:1999:i:453:p:f91-111
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    Citations

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    Cited by:

    1. Shi, Xuehua & Nuetah, J. Alexander & Xin, Xian, 2010. "Household income mobility in rural China: 1989-2006," Economic Modelling, Elsevier, vol. 27(5), pages 1090-1096, September.
    2. Alfons Palangkaraya & Andreas Stierwald & Jongsay Yong, 2009. "Is Firm Productivity Related to Size and Age? The Case of Large Australian Firms," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 167-195, June.
    3. Carlos Gradín & Olga Cantó, 2009. "Why are child poverty rates so persistently high in Spain?," Working Papers 123, ECINEQ, Society for the Study of Economic Inequality.
    4. Ayala, Luis & Sastre, Mercedes, 2002. "What determines income mobility differences across the European Union?," ISER Working Paper Series 2002-27, Institute for Social and Economic Research.
    5. Oliver Pamp & Philipp Mohl, 2008. "Income Inequality and Redistributional Spending: An Empirical Investigation of Competing Theories," LIS Working papers 491, LIS Cross-National Data Center in Luxembourg.
    6. Jenkins, Stephen P., 2009. "Spaghetti unravelled: a model-based description of differences in income-age trajectories," ISER Working Paper Series 2009-30, Institute for Social and Economic Research.
    7. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, pages 897-931.
    8. Philippe Agulnik, 1998. "The proposed state second pension," Fiscal Studies, Institute for Fiscal Studies, vol. 20(4), pages 409-421, November.
    9. Ambra Poggi, 2007. "Does persistence of social exclusion exist in Spain?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 53-72, April.
    10. José Arranz & Olga Cantó, 2012. "Measuring the effect of spell recurrence on poverty dynamics—evidence from Spain," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 191-217, June.
    11. Olga Cantó & Carlos Gradín & Coral Del Río, 2012. "Pobreza Crónica, Transitoria Y Recurrente En España," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 20(1), pages 69-94, Spring.
    12. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November.
    13. Tania Burchardt, 2004. "One man's rags are another man's riches: Identifying adaptive preferences using panel data," CASE Papers 086, Centre for Analysis of Social Exclusion, LSE.
    14. Le Grand, Julian & Richardson, Liz, 2002. "Outsider and insider expertise: the response of residents of deprived neighbourhoods to an academic definition of social exclusion," LSE Research Online Documents on Economics 4647, London School of Economics and Political Science, LSE Library.
    15. Luis Ayala & Mercedes Sastre, 2002. "La medición de la movilidad de ingresos: enfoques e indicadores," Hacienda Pública Española, IEF, vol. 162(3), pages 101-131, September.
    16. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Journal of Income Distribution, pages 4-4.
    17. Des O'Dea, 2000. "The Changes in New Zealand's Income Distribution," Treasury Working Paper Series 00/13, New Zealand Treasury.
    18. Burchardt, Tania, 2004. "One man's rags are another man's riches: identifying adaptive preferences using panel data," LSE Research Online Documents on Economics 6304, London School of Economics and Political Science, LSE Library.
    19. Philippe Van Kerm, 2002. "Une perspective longitudinale sur la pauvreté en Belgique," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(3), pages 23-36.
    20. Can Liu & Sen Wang & Hao Liu & Wenqing Zhu, 2012. "The Impact of China’s Priority Forest Programs on Rural Households Income Mobility," Working Papers PIERI 2012-10, PEP-PIERI.

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