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Inequality, growth and mobility: The intertemporal distribution of income in European countries 2003–2007

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  • Van Kerm, Philippe
  • Pi Alperin, Maria Noel

Abstract

This paper exploits EU Statistics on Income and Living Conditions longitudinal data 2003–2007 to describe the intertemporal distribution of income in twenty-six European countries prior to the onset of the Great Recession. We document levels, inequality and progressivity in the distribution of year-on-year income gains and losses and examine the relationship of these with inequality and poverty indicators. New Member States have typically seen individual incomes grow faster than other EU countries. Income gains were disproportionately pro-poor in all countries. We therefore observe regression to the mean both among EU countries and among individuals within countries. However, short-run income mobility does not significantly reduce inequality of time-averaged incomes. Potential issues about cross-country comparability of the data and the short period under consideration call for caution in interpreting our results, however.

Suggested Citation

  • Van Kerm, Philippe & Pi Alperin, Maria Noel, 2013. "Inequality, growth and mobility: The intertemporal distribution of income in European countries 2003–2007," Economic Modelling, Elsevier, vol. 35(C), pages 931-939.
  • Handle: RePEc:eee:ecmode:v:35:y:2013:i:c:p:931-939
    DOI: 10.1016/j.econmod.2013.07.001
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    References listed on IDEAS

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    Cited by:

    1. Elena Bárcena-Martín & M. Carmen Blanco-Arana & Salvador Pérez-Moreno, 2017. "Dynamics of child poverty in the European countries," Working Papers 437, ECINEQ, Society for the Study of Economic Inequality.
    2. Yekaterina Chzhen & Emilia Toczydlowska & Sudhanshu Handa & UNICEF Innocenti Research Centre, 2016. "Child Poverty Dynamics and Income Mobility in Europe," Papers inwopa840, Innocenti Working Papers.
    3. Stephen Jenkins & Philippe Van Kerm, 2014. "The Relationship Between EU Indicators of Persistent and Current Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(2), pages 611-638, April.
    4. Elena Giarda & Gloria Moroni, 2018. "The Degree of Poverty Persistence and the Role of Regional Disparities in Italy in Comparison with France, Spain and the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 163-202, February.
    5. Elena Bárcena & Olga Cantó, 2018. "A simple subgroup decomposable measure of downward (and upward) income mobility," Working Papers 472, ECINEQ, Society for the Study of Economic Inequality.
    6. Lefebvre, Mathieu & Pestieau, Pierre & Ponthiere, Gregory, 2019. "Missing poor and income mobility," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 330-366.
    7. Ronald Bachmann & Peggy Bechara & Sandra Schaffner, 2012. "Wage Inequality and Wage Mobility in Europe," Ruhr Economic Papers 0386, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Ronald Bachmann & Peggy Bechara & Sandra Schaffner, 2016. "Wage Inequality and Wage Mobility in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(1), pages 181-197, March.
    9. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Fusco, Alessio, 2015. "The relationship between income and housing deprivation: A longitudinal analysis," Economic Modelling, Elsevier, vol. 49(C), pages 137-143.
    11. Austin Nichols & Philipp Rehm, 2014. "Income Risk in 30 Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 98-116, May.
    12. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    13. Jenkins, Stephen P. & Van Kerm, Philippe, 2011. "Patterns of persistent poverty: evidence from EU-SILC," ISER Working Paper Series 2011-30, Institute for Social and Economic Research.
    14. Carlos Martins & Nuno Alves, 2012. "Mobility and income inequality in the European Union and in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    15. Veronica Polin & Michele Raitano, 2012. "Poverty Dynamics in Clusters of European Union Countries: Related Events and Main Determinants," Working Papers 10/2012, University of Verona, Department of Economics.
    16. Olga Cantó & David O. Ruiz, 2015. "The Contribution of Income Mobility to Economic Insecurity in the US and Spain during the Great Recession," Research on Economic Inequality, in: Thesia I. Garner & Kathleen S. Short (ed.), Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 109-152, Emerald Publishing Ltd.
    17. repec:zbw:rwirep:0386 is not listed on IDEAS
    18. Helder Ferreira de Mendonça & Diogo Martins Esteves, 2018. "Monetary authority's transparency and income inequality," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 202-227, November.
    19. Abigail McKnight, 2019. "Understanding the relationship between poverty, inequality and growth: a review of existing evidence," CASE Papers /216, Centre for Analysis of Social Exclusion, LSE.
    20. Chambers, Dustin & Dhongde, Shatakshee, 2016. "Convergence in income distributions: Evidence from a panel of countries," Economic Modelling, Elsevier, vol. 59(C), pages 262-270.

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