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Intragenerational Mobility in Italy: a Non-parametric Estimates

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  • Irene Brunetti
  • Davide Fiaschi

Abstract

The paper proposes a novel methodology based on a non-parametric method to estimate intragenerational income mobility. We apply it to the analysis of mobility of a sample of Italian individuals (between 16 and 65 years old) from the Survey on Household Income and Wealth (SHIW) by the Bank of Italy in the period 1987-2010. First, the linear specification of the Markovian model is estimated removing the assumption of no serial correlation in the error term suggesting a low level of income mobility. Second, a non-linear specification of Markovian model is estimated providing both "local" and global measures of income mobility. Income mobility appears to be low; in particular it reaches a minimum in the middle of income distribution and maximum values at the extreme bounds, with an income elasticity ranging from 0.4 to 0.8 in the relevant range of income (0.5-2). Moreover, from 1987-1998 to 2000-2010 income mobility has increased over time, in particular in the middle of distribution.

Suggested Citation

  • Irene Brunetti & Davide Fiaschi, 2015. "Intragenerational Mobility in Italy: a Non-parametric Estimates," Discussion Papers 2015/204, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2015/204
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2015-204.pdf
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    References listed on IDEAS

    as
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    4. Jenkins, Stephen P., 2011. "Changing Fortunes: Income Mobility and Poverty Dynamics in Britain," OUP Catalogue, Oxford University Press, number 9780199226436.
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    8. Danny Quah, 1997. "Empirics for Growth and Distribution," CEP Discussion Papers dp0324, Centre for Economic Performance, LSE.
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    More about this item

    Keywords

    Relative Income Mobility; Mobility Indexes; Markov Chain; Non-parametric Estimate.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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