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Income mobility, permutations, and rerankings

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  • Ruiz-Castillo, Javier

Abstract

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.

Suggested Citation

  • Ruiz-Castillo, Javier, 1997. "Income mobility, permutations, and rerankings," UC3M Working papers. Economics 6070, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:6070
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Ruiz-Castillo, Javier, 1998. "La comparación de distribuciones de renta en un contexto dinámico: dificultades y perspectivas," DE - Documentos de Trabajo. Economía. DE 3886, Universidad Carlos III de Madrid. Departamento de Economía.

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    Keywords

    Income mobility;

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