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History dependent growth incidence: A characterisation and an application to the economic crisis in Italy

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  • Flaviana Palmisano

    () (University of Bari and UAB (Barcelona))

  • Dirk Van de gaer

    () (Sherppa (Ghent University), IAE (CSIC Barcelona) and CORE (Louvain la Neuve).)

Abstract

We propose a characterisation of an aggregate measure of growth that takes into account the initial economic conditions of individuals. Our measure is a weighted average of individual income growth with weights that are decreasing with the rank of the individual in the initial income distribution. We apply our theoretical framework to evaluate the growth processes experienced by the Italian population in the last decade and find that the 2008-2010 crisis deteriorated the income growth of the initially poor disproportionately. This is compatible with the dual nature of the Italian labour market.

Suggested Citation

  • Flaviana Palmisano & Dirk Van de gaer, 2013. "History dependent growth incidence: A characterisation and an application to the economic crisis in Italy," Working Papers 314, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2013-314
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    References listed on IDEAS

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    Cited by:

    1. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
    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. Shatakshee Dhongde & Jacques Silber, 2016. "On distributional change, pro-poor growth and convergence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(3), pages 249-267, September.
    5. Florent Bresson & Jean-Yves Duclos & Flaviana Palmisano, 2015. "Intertemporal pro-poorness," Cahiers de recherche 1514, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.

    More about this item

    Keywords

    Individual income growth; directional income mobility; pro-poor growth; economic crisis.;

    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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