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Income Mobility and Mixing in North Macedonia

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  • Viktor Stojkoski
  • Sonja Mitikj
  • Marija Trpkova-Nestorovska
  • Dragan Tevdovski

Abstract

This study presents the inaugural analysis of income mobility in North Macedonia from 1995-2021 using the Mixing Time and Mean First Passage Time (MFPT) metrics. We document larger mobility (in terms of Mixing Time) during the '90s, with and decreasing trend (in terms of mobility) until 1999. After this year the Mixing time has been consistent with a value of around 4 years. Using the MFPT, we highlight the evolving challenges individuals face when aspiring to higher income tiers. Namely, we show that there was a noticeable upward trend in MFPT from 1995 to 2006, a subsequent decline until 2017, and then an ascent again, peaking in 2021. These findings provide a foundational perspective on the income mobility in North Macedonia.

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  • Viktor Stojkoski & Sonja Mitikj & Marija Trpkova-Nestorovska & Dragan Tevdovski, 2023. "Income Mobility and Mixing in North Macedonia," Papers 2309.17268, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2309.17268
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    References listed on IDEAS

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    1. Raj Chetty & Matthew O. Jackson & Theresa Kuchler & Johannes Stroebel & Nathaniel Hendren & Robert B. Fluegge & Sara Gong & Federico Gonzalez & Armelle Grondin & Matthew Jacob & Drew Johnston & Martin, 2022. "Social capital I: measurement and associations with economic mobility," Nature, Nature, vol. 608(7921), pages 108-121, August.
    2. Viktor Stojkoski & Trifce Sandev & Ljupco Kocarev & Arnab Pal, 2021. "Geometric Brownian Motion under Stochastic Resetting: A Stationary yet Non-ergodic Process," Papers 2104.01571, arXiv.org, revised Aug 2021.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Dragan Tevdovski, 2015. "Income Inequality In Macedonia: Mechanisms And Solutions," Journal Articles, Center For Economic Analyses, pages 57-66, December.
    5. William Bartlett & Hristina Cipusheva & Marjan Nikolov & Miroljub Shukarov, 2010. "The Quality of Life and Regional Development in FYR Macedonia," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 121-162, April.
    6. Dimitar NIKOLOSKI & Miroslav GVEROSKI, 2017. "Assessing the poverty-growth-inequality nexus: the case of Macedonia," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 29-43, June.
    7. Stojkoski, Viktor, 2024. "Measures of physical mixing evaluate the economic mobility of the typical individual," Chaos, Solitons & Fractals, Elsevier, vol. 180(C).
    8. Jolakoski, Petar & Pal, Arnab & Sandev, Trifce & Kocarev, Ljupco & Metzler, Ralf & Stojkoski, Viktor, 2023. "A first passage under resetting approach to income dynamics," Chaos, Solitons & Fractals, Elsevier, vol. 175(P1).
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