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Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches


  • Fields Gary S.
  • Duval-Hernández Robert
  • Jakubson George H.


We reconcile, both theoretically and empirically, changes in inequality with panel income changes over periods of economic growth and decline. We also explore what factors account for the trends of short-run inequality and of inequality in individual average earnings. Finally, we explore what factors account for the equalization brought about by economic mobility. Using panel earnings data from Mexico we find that earnings changes are convergent, irrespective of whether inequality rises or falls. This is caused by a small fraction of individuals experiencing large and convergent earnings changes. The equalization that earnings changes bring over a year is mainly driven by changes in the employment and sector of workers.

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  • Fields Gary S. & Duval-Hernández Robert & Jakubson George H., 2015. "Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2015-026

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    References listed on IDEAS

    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Myeong‐Su Yun, 2006. "Earnings Inequality In Usa, 1969–99: Comparing Inequality Using Earnings Equations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 127-144, March.
    3. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
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    1. Analysing Income Distribution Changes : Anonymous Versus Panel Income Approaches By: Gary S. Fields ; Robert Duval-Hernández ; George Jakubson
      by maximorossi in NEP-LTV blog on 2015-06-15 22:27:16

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    Equality and inequality; Income; Income distribution;

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