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Assessing individual income growth

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  • Jenkins, Stephen P.
  • van Kerm, Philippe

Abstract

We develop methods for describing distributions of income growth across individuals and for comparing changes in growth distributions over time. The methods include graphical devices (‘income growth profiles’) and dominance conditions, and also summary indices, together with associated methods of estimation and inference. Taking an explicitly longitudinal perspective, our approach illuminates clearly who are the gainers and the losers, and also provides distributionally-sensitive assessments – ones that allow the income growth for different individuals to be weighted differently. Our empirical application shows that the pattern of income growth in Britain over the period 1992–1996 was less pro-poor than that for 1998–2002 and not significantly different from the pattern for 2001–2005.

Suggested Citation

  • Jenkins, Stephen P. & van Kerm, Philippe, 2016. "Assessing individual income growth," LSE Research Online Documents on Economics 66995, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:66995
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    File URL: http://eprints.lse.ac.uk/66995/
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    References listed on IDEAS

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    Cited by:

    1. John Voorheis, 2017. "Longitudinal Environmental Inequality and Environmental Gentrification: Who Gains From Cleaner Air?," CARRA Working Papers 2017-04, Center for Economic Studies, U.S. Census Bureau.
    2. ANDREOLI Francesco & MUSSINI Mauro & PRETE Vincenzo, 2019. "Urban poverty: Theory and evidence from American cities," LISER Working Paper Series 2019-07, LISER.
    3. Creedy, John & Gemmell, Norman, 2017. "Illustrating Income Mobility: Two New Measures," Working Paper Series 6693, Victoria University of Wellington, Chair in Public Finance.
    4. Maria C. Lo Bue & Flaviana Palmisano, 2019. "The individual poverty incidence of growth," WIDER Working Paper Series wp-2019-41, World Institute for Development Economic Research (UNU-WIDER).
    5. John Creedy & Norman Gemmell, 2018. "Income Dynamics, Pro‐Poor Mobility and Poverty Persistence Curves," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 316-328, September.
    6. Bárcena-Martín, Elena & Medina-Claros, Samuel & Pérez-Moreno, Salvador, 2020. "Gendered Effects of Employment Protection on Earnings Mobility," GLO Discussion Paper Series 547, Global Labor Organization (GLO).

    More about this item

    Keywords

    individual income growth; pro-poor growth; progressive income growth; income mobility; income growth profile;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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