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Inequality, mobility and income distribution comparisons

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  • John Creedy

Abstract

This paper examines the relationship between the cross-sectional and lifetime income distributions using a simple model of relative income mobility. It asks whether cross-sectional comparisons between countries can provide a good indication of lifetime inequality differences if income mobility is similar, and whether lifetime inequality increases by less than cross-sectional inequality if the latter increases as a result of higher mobility. Analytical and simulation methods are used to show that the answer to both questions is negative. Comparisons must allow for different types of mobility, the nature of the age-income profile and the age distribution in each country.

Suggested Citation

  • John Creedy, 1997. "Inequality, mobility and income distribution comparisons," Fiscal Studies, Institute for Fiscal Studies, vol. 18(3), pages 293-302, August.
  • Handle: RePEc:ifs:fistud:v:18:y:1997:i:3:p:293-302
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    File URL: http://www.ifs.org.uk/fs/articles/fscreedy.pdf
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    Cited by:

    1. John Creedy & Elin Halvorsen & Thor O. Thoresen, 2013. "Inequality Comparisons In A Multi-Period Framework: The Role Of Alternative Welfare Metrics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 235-249, June.
    2. David Cantarero & Marta Pascual, 2005. "Regional Differences In Health In Spain - An Empirical Analysis," ERSA conference papers ersa05p551, European Regional Science Association.
    3. 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, vol. 13(1-2), pages 4-4, March-Jun.
    4. Creedy, John & Gemmell, Norman & Nguyen, Loc, 2017. "Income inequality in New Zealand, 1935 – 2014," Working Paper Series 6490, Victoria University of Wellington, Chair in Public Finance.
    5. Creedy, John, 2013. "Alternative Distributions for Inequality and Poverty Comparisons," Working Paper Series 2851, Victoria University of Wellington, Chair in Public Finance.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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