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Inequality and Mobility of Household Incomes in Europe. Evidence from the ECHP

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  • Riener, Gerhard

    (Department of Economics, University of Essex, Essex, United Kingdom)

Abstract

In this paper I want to shed light on two aspects of income mobility: relative total income mobility using the estimator by Fields and Ok [1999] and equalization of long-run incomes measured by the index of Fields [2004]. The cross country comparison shows a negative relationship between total relative mobility and long-run income equalization, this results is contrary to the intuition given by Shorrocks [1978a] who stated, that higher relative mobility will cause higher equalization of incomes when the accounting period is extended.

Suggested Citation

  • Riener, Gerhard, 2006. "Inequality and Mobility of Household Incomes in Europe. Evidence from the ECHP," Economics Series 195, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:195
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    File URL: https://irihs.ihs.ac.at/id/eprint/1729
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    References listed on IDEAS

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    1. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 191-208.
    2. Cowell, Frank & Schluter, Christian, 1998. "Income mobility : a robust approach," LSE Research Online Documents on Economics 2210, London School of Economics and Political Science, LSE Library.
    3. Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July.
    4. 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.
    5. 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.
    6. Roland Benabou & Efe A. Ok, 2000. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," Working Papers 150, Princeton University, School of Public and International Affairs, Discussion Papers in Economics.
    7. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
    8. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    9. 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.
    10. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    11. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    12. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
    13. Fields, Gary S & Ok, Efe A, 1999. "Measuring Movement of Incomes," Economica, London School of Economics and Political Science, vol. 66(264), pages 455-471, November.
    14. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
    15. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, vol. 108(447), pages 428-443, March.
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    Cited by:

    1. Yekaterina Chzhen & Emilia Toczydlowska & Sudhanshu Handa & UNICEF Innocenti Research Centre, 2016. "Child Poverty Dynamics and Income Mobility in Europe," Papers inwopa840, Innocenti Working Papers.
    2. Fonseca, Miguel A. & Normann, Hans-Theo, 2012. "Explicit vs. tacit collusion—The impact of communication in oligopoly experiments," European Economic Review, Elsevier, vol. 56(8), pages 1759-1772.
    3. Aysit Tansel & Başak Dalgıç & Aytekin Güven, 2019. "Wage Inequality and Wage Mobility in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 107-129, February.
    4. Magali Duque & Abigail McKnight, 2019. "Understanding the relationship between inequalities and poverty: a review of dynamic mechanisms," CASE Papers /217, Centre for Analysis of Social Exclusion, LSE.
    5. Duque, Magali & Mcknight, Abigail, 2019. "Understanding the relationship between inequalities and poverty: a review of dynamic mechanisms," LSE Research Online Documents on Economics 103457, London School of Economics and Political Science, LSE Library.
    6. Aysit Tansel & Başak Dalgıç & Aytekin Güven, 2019. "Wage Inequality and Wage Mobility in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 107-129, February.

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    More about this item

    Keywords

    Income distribution; Economic mobility; Inequality;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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