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What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA

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  • Van Kerm, Philippe

    (CEPS/INSTEAD, Differdange, G.-D. Luxembourg)

Abstract

The paper presents a decomposition of income mobility indices into two basic sources: Mobility induced by a change of the income distribution shape and mobility induced by a re-ordering of individuals in the income pecking order. The decomposition procedure based on counterfactual distributions results in a decomposition that is applicable to a broad class of mobility measures. Application to income indices with data for Belgium, Western Germany and the USA indicates that reranking has been the major force behind income mobility.

Suggested Citation

  • Van Kerm, Philippe, 2003. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," IRISS Working Paper Series 2003-03, IRISS at CEPS/INSTEAD.
  • Handle: RePEc:irs:iriswp:2003-03
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    References listed on IDEAS

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    1. Javier Ruiz-Castillo, 2004. "The measurement of structural and exchange income mobility," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(3), pages 219-228, September.
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    Keywords

    Income mobility ; Distributional change ; Exchange and Structural mobility;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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