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


  • Riener, Gerhard

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


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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    References listed on IDEAS

    1. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," Review of Economic Studies, Oxford University Press, 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. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Journal of Income Distribution, vol. 13(1-2), pages 4-4, March-Jun.
    4. R. Bénabou & E. Ok, 2000. "Mobility as Progressivity: Ranking Income Processes According to Equality of Opportunity," Princeton Economic Theory Papers 00f1, Economics Department, Princeton University.
    5. 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.
    6. 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.
    7. 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 & Basak Dalgic & Aytekin Guven, 2014. "Wage Inequality and Wage Mobility in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1419, Koc University-TUSIAD Economic Research Forum.

    More about this item


    Income distribution; Economic mobility; Inequality;

    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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