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Income mobility, permutations, and rerankings

Listed author(s):
  • Ruiz-Castillo, Javier

Chakravarty, Dutta and Weymark (1985) present axioms for an ethical index of relative income mobility in a two period world. This paper presents a decomposition of this index into two terms: (i) an index of structural mobility which captures differences in the inequality of the cross-section income distributions, and (ii) an index of exchange mobility which captures changes in relative incomes. These concepts are shown to be useful in the evaluation of an income tax system which induces rerankings between the pre-tax and the after-tax income distributions, as well as in other contexts where there are reorderings between individuals.

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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number 6070.

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Date of creation: 1997
Handle: RePEc:cte:werepe:6070
Contact details of provider: Web page: http://www.eco.uc3m.es/

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  16. Javier Ruiz-Castillo, 1995. "Income distribution and social welfare: a review essay," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 3-34, January.
  17. Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-997, July.
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  19. Markandya, Anil, 1984. "The Welfare Measurement of Changes in Economic Mobility," Economica, London School of Economics and Political Science, vol. 51(204), pages 457-471, November.
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