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Non-anonymous growth incidence curves, income mobility and social welfare dominance

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  • François Bourguignon

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Abstract

The distributional incidence of growth is generally analyzed by comparing the quantiles of the pre- and post-growth income distribution--e.g. the so-called Growth Incidence Curves. Such an approach based on an implicit re-ranking of individual incomes ignores income mobility by assuming that only post-growth income matters in social welfare. By contrast, this paper takes the view that "status quo matters" and that social welfare should logically be defined on both inital and terminal income. This leads to consider'non-anonymous' Growth Incidence Curves that plot income growth rates against the various quantiles of the initial distribution. Dominance criteria that generalize those available for standard growth incidence curves are derived, which account for the inequality of individual income changes, conditional on initial income. An application to the cross-country distributional feature of global growth illustrates the analysis.
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Suggested Citation

  • François Bourguignon, 2011. "Non-anonymous growth incidence curves, income mobility and social welfare dominance," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 605-627, December.
  • Handle: RePEc:kap:jecinq:v:9:y:2011:i:4:p:605-627
    DOI: 10.1007/s10888-010-9159-7
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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. Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
    3. Paul, Saumik, 2016. "Heterogeneous Structural Transformation and Growth Incidence across the Income Distribution: the Kuznets Curve Revisited," CEI Working Paper Series 2016-1, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    4. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    5. Guillermo Cruces & Gary Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Cross-country analysis," WIDER Working Paper Series 110, World Institute for Development Economic Research (UNU-WIDER).
    6. Paul, Saumik & Fukao, Kyoji, 2017. "The Role of Structural Transformation in Regional Productivity Growth and Convergence in Japan: 1874 - 2008," CEI Working Paper Series 2016-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    7. Flaviana Palmisano, 2015. "Evaluating patterns of income growth when status matters: a robust approach," Working Papers 375, ECINEQ, Society for the Study of Economic Inequality.
    8. Brian Burgoon & Sam van Noort & Matthijs Rooduijn & Geoffrey Underhill, 2018. "Radical Right Populism and the Role of Positional Deprivation and Inequality," LIS Working papers 733, LIS Cross-National Data Center in Luxembourg.
    9. repec:eme:reinzz:s1049-258520150000023004 is not listed on IDEAS
    10. Nora Lustig & Sean Higgins, 2012. "Fiscal Incidence, Fiscal Mobility and the Poor: a New Approach," Working Papers 265, ECINEQ, Society for the Study of Economic Inequality.
    11. Rey, Sergio, 2016. "Space-time patterns of rank concordance: Local indicators of mobility association with application to spatial income inequality dynamics," MPRA Paper 69480, University Library of Munich, Germany.
    12. Thomas Groll & Peter J. Lambert, 2013. "The Pro-Poorness, Growth and Inequality Nexus: Some Findings From a Simulation Study," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 776-784, December.
    13. Flaviana Palmisano & Vito Peragine, 2015. "The Distributional Incidence of Growth: A Social Welfare Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 440-464, September.
    14. De Hoyos Navarro,Rafael E. & Holland,Peter Anthony & Troiano,Sara, 2015. "Understanding the trends in learning outcomes in Argentina, 2000 to 2012," Policy Research Working Paper Series 7518, The World Bank.
    15. Sean Higgins & Nora Lustig, 2015. "Can Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor?," Commitment to Equity (CEQ) Working Paper Series 1333, Tulane University, Department of Economics.
    16. repec:tul:ceqwps:1304 is not listed on IDEAS
    17. Antonio Abatemarco, 2016. "Evaluating economic mobility under opportunity egalitarianism," Working Papers 396, ECINEQ, Society for the Study of Economic Inequality.
    18. Elena Bárcena-Martín & Ana I. Moro Egido & Salvador Perez-Moreno, 2015. "To what extent income growth differs with children. The Spanish case," ThE Papers 15/01, Department of Economic Theory and Economic History of the University of Granada..
    19. 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.
    20. Martin Ravallion, 2017. "Inequality and globalization: A review essay," Working Papers 435, ECINEQ, Society for the Study of Economic Inequality.
    21. Michael Savage, 2016. "Poorest Made Poorer? Decomposing income losses at the bottom of the income distribution during the Great Recession," Papers WP528, Economic and Social Research Institute (ESRI).
    22. repec:spr:chinre:v:9:y:2016:i:2:d:10.1007_s12187-015-9329-z is not listed on IDEAS
    23. 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: Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 109-152 Emerald Publishing Ltd.
    24. Flaviana Palmisano, 2012. "The distributional incidence of growth: a non-anonymous and rank dependent approach," SERIES 0039, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Jul 2012.
    25. Fabian Dunker & Stephan Klasen & Tatyana Krivobokova, 2017. "Asymptotic Distribution and Simultaneous Confidence Bands for Ratios of Quantile Functions," Papers 1710.09009, arXiv.org.

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    Keywords

    Growth; Pro-poor; Inequality; Income mobility; Dominance;

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