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The measurement of structural and exchange income mobility

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  • Javier Ruiz-Castillo

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Abstract

Chakravarty, Dutta and Weymark (1985) present operational axioms for an ethical index of income mobility that are best suited for a two period world. This paper suggests a decomposition of this index into two terms: (i) an index of structural or snapshot mobility, which captures the welfare effect of differences in the inequality of the cross-section income distributions; and (ii) an index of exchange or rerankings mobility, which captures the welfare impact of rank reversals between the first- and the second-period income distributions. Income inequality reductions and rank reversals are always welfare enhancing. The properties of all the income mobility concepts introduced in the paper do not require any new value judgements beyond the traditional ones. Copyright Kluwer Academic Publishers 2004

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  • Javier Ruiz-Castillo, 2004. "The measurement of structural and exchange income mobility," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(3), pages 219-228, September.
  • Handle: RePEc:kap:jecinq:v:2:y:2004:i:3:p:219-228
    DOI: 10.1007/s10888-004-4075-3
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    Cited by:

    1. Jantti, Markus & Jenkins, Stephen P., 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    2. Allanson, Paul, 2008. "On the characterisation and measurement of the welfare effects of income mobility from an ex-ante perspective," SIRE Discussion Papers 2008-48, Scottish Institute for Research in Economics (SIRE).
    3. repec:ibn:ijefaa:v:9:y:2017:i:12:p:260-277 is not listed on IDEAS
    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. Frank A. Cowell & Emmanuel Flachaire, 2011. "Measuring mobility," Working Papers 199, ECINEQ, Society for the Study of Economic Inequality.
    6. Kai-yuen Tsui, 2009. "Measurement of income mobility: a re-examination," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 629-645, November.
    7. 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.
    8. Gary Fields, 2010. "Does income mobility equalize longer-term incomes? New measures of an old concept," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 409-427, December.
    9. Philippe Van Kerm, 2004. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," Economica, London School of Economics and Political Science, vol. 71(281), pages 223-239, May.
    10. 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.
    11. C. Schluter & D. Van De Gaer, 2008. "Structural Mobility, Exchange Mobility and Subgroup Consistent Mobility Measurement – US–German Mobility Measurements Revisited," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/543, Ghent University, Faculty of Economics and Business Administration.
    12. Raquel Carrasco & Javier Ruiz-Castillo, 2014. "The Evolution Of The Scientific Productivity Of Highly Productive Economists," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 1-16, January.
    13. Rolf Aaberge & Magne Mogstad, 2009. "On the Measurement of Long-Term Income Inequality and Income Mobility," ICER Working Papers 09-2009, ICER - International Centre for Economic Research.
    14. D'Agostino, Marcello & Dardanoni, Valentino, 2009. "The measurement of rank mobility," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1783-1803, July.
    15. Duro, Juan Antonio, 2013. "International mobility in carbon dioxide emissions," Energy Policy, Elsevier, vol. 55(C), pages 208-216.
    16. Flaviana Palmisano, 2011. "Mobility and Long term Equality of Opportunity," SERIES 0035, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Feb 2011.
    17. Jacques Silber & Michal Weber, 2005. "Gini's mean difference and the measurement of absolute mobility," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 471-492.
    18. 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.
    19. Joachim Jarreau, 2015. "The Impact of Naturalizations on Job Mobility and Wages: Evidence from France," Working Papers halshs-01117449, HAL.
    20. 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.
    21. Florent Bresson & Jean-Yves Duclos & Flaviana Palmisano, 2015. "Intertemporal pro-poorness," Cahiers de recherche 1514, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    22. Modai-Snir, Tal & van Ham, Maarten, 2017. "Structural and Exchange Components in Processes of Neighbourhood Change: A Social Mobility Approach," IZA Discussion Papers 10695, Institute for the Study of Labor (IZA).
    23. Sanghamitra Bandyopadhyay & Gaston Yalonetzky, 2016. "An individual-based approach to measurement of multiple-period mobility for nominal and ordinal variables," Working Papers 65, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    24. Paul Allanson, 2012. "On the characterization and economic evaluation of income mobility as a process of distributional change," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 505-528, December.
    25. Rolf Aaberge & Magne Mogstad, 2014. "Income mobility as an equalizer of permanent income," Discussion Papers 769, Statistics Norway, Research Department.

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