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The Contribution of Income Mobility to Economic Insecurity in the US and Spain during the Great Recession

In: Measurement of Poverty, Deprivation, and Economic Mobility

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  • Olga Cantó
  • David O. Ruiz

Abstract

Abstract Recent evidence on the impact of the crisis on developed countries shows that changes in income inequality and poverty have been relatively small in spite of the macroeconomic heterogeneity of the recession across different economies. However, when evaluating individual perceptions linked to the crisis any changes in the chances to scale up or lose ground in the income ladder are also crucial. Our aim in this paper is to analyze to what extent the recession has had an impact on individual equivalent incomes and, in particular, on the prevalence of downward mobility in two developed countries where job losses have been large. We find that income losses have increased, particularly in Spain, and while age and education are key determinants of the probability of experiencing an income loss in both countries, the presence of children only increases the probability of an income loss in Spain.

Suggested Citation

  • 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.
  • Handle: RePEc:eme:reinzz:s1049-258520150000023004
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    Cited by:

    1. 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.
    2. 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).

    More about this item

    Keywords

    Mobility; economic insecurity; income volatility; recession; US; Spain; D31; D63; I14;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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