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The measurement of structural and exchange income mobility

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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 suggests a decomposition of this index into i) an index of structural mobility, which captures the welfare effect of differences in the inequality of the cross-section income distributions; and ii) an index of exchange mobility, which captures the welfare impact of permutations or rank reversals between the first-and the secon-period income distributions. We propose a second decomposition in order to isolate the effect on mobility of mean incomes changes. The properties of all the income mobility concepts introduced in the paper do not require any new value judgements beyond the traditional ones.

Suggested Citation

  • Ruiz-Castillo, Javier, 2000. "The measurement of structural and exchange income mobility," UC3M Working papers. Economics 7274, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:7274
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    References listed on IDEAS

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    1. Markandya, Anil, 1982. "Intergenerational exchange mobility and economic welfare," European Economic Review, Elsevier, vol. 17(3), pages 307-324.
    2. King, Mervyn A, 1983. "An Index of Inequality: With Applications to Horizontal Equity and Social Mobility," Econometrica, Econometric Society, vol. 51(1), pages 99-115, January.
    3. repec:bla:econom:v:51:y:1984:i:204:p:457-71 is not listed on IDEAS
    4. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
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    7. Charles Blackorby & David Donaldson, 1984. "Ethical Social Index Numbers and the Measurement of Effective Tax-Benefit Progressivity," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 683-694, November.
    8. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
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    11. Ruiz-Castillo, Javier, 1997. "Income mobility, permutations, and rerankings," UC3M Working papers. Economics 6070, Universidad Carlos III de Madrid. Departamento de Economía.
    12. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
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    Cited by:

    1. Ayala, Luis & Sastre, Mercedes, 2002. "What determines income mobility differences across the European Union?," ISER Working Paper Series 2002-27, Institute for Social and Economic Research.
    2. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November.
    3. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Ad libros publications inc., vol. 13(1-2), pages 4-4, March-Jun.
    4. Jacques Silber & Michal Weber, 2005. "Gini's mean difference and the measurement of absolute mobility," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 471-492.

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    Keywords

    Income mobility;

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