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Statistical Inference for Measures of Income Mobility / Statistische Inferenz zur Messung der Einkommensmobilität

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  • Trede Mark

    (Seminar für Wirtschafts- und Sozialstatistik, Universität zu Köln, Albertus- Magnus-Platz, D-50923 Köln)

Abstract

This paper reviews various mobility measures and establishes their asymptotic sampling distribution. The focus is on both transition matrix mobility measures and mobility measures which are based on the reduction in inequality occurring when the accounting period is extended. Statistical techniques are used to show the asymptotic normality of these measures and their variances. The empirical illustration examines the development of earnings mobility for both sexes in Germany between 1983 and 1992 using the Socio-Economic Panel data. It turns out that male earnings mobility fell during the eighties whereas the development of female earnings mobility is less clear. Comparing the levels of mobility females are more mobile than males, at least when inequality reduction mobility measures are employed. Considering the rather large number of observations the confidence intervals are often surprisingly wide. Therefore, confidence regions for mobility measures ought to be reported in empirical work whenever possible.

Suggested Citation

  • Trede Mark, 1999. "Statistical Inference for Measures of Income Mobility / Statistische Inferenz zur Messung der Einkommensmobilität," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 218(3-4), pages 473-490, June.
    • Handle: RePEc:jns:jbstat:v:218:y:1999:i:3-4:p:473-490
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    Citations

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    Cited by:

    1. Formby, John P. & Smith, W. James & Zheng, Buhong, 2004. "Mobility measurement, transition matrices and statistical inference," Journal of Econometrics, Elsevier, vol. 120(1), pages 181-205, May.
    2. Yi Chen & Frank A. Cowell, 2017. "Mobility in China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 203-218, June.
    3. Gaston Yalonetzky, 2009. "Comparing Economic Mobility with Heterogeneity Indices: An Application to Education in Peru," OPHI Working Papers 33, Queen Elizabeth House, University of Oxford.
    4. Fiaschi, Davide & Lavezzi, Andrea Mario, 2003. "Distribution Dynamics and Nonlinear Growth," Journal of Economic Growth, Springer, vol. 8(4), pages 379-401, December.
    5. Wei Kang & Sergio J. Rey, 2020. "Inference for Income Mobility Measures in the Presence of Spatial Dependence," International Regional Science Review, , vol. 43(1-2), pages 10-39, January.

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