Book Chapter•
Income inequality and income mobility
01 Jan 2007-pp 2275-2277
About: The article was published on 2007-01-01 and is currently open access. It has received 119 citations till now. The article focuses on the topics: Income distribution & Income inequality metrics.
Citations
More filters
Posted Content•
TL;DR: In this article, the authors investigated the relationship between marginal tax rates and the probability of staying in the same income decile by using counterfactual rates based on legislated changes in the tax schedule.
Abstract: This paper investigates how taxes affect relative mobility in the income distribution in the US Household panel data drawn from the PSID between 1967 and 1996 is employed to analyse the relationship between marginal tax rates and the probability of staying in the same income decile Exogenous variation in marginal tax rates is identified by using counterfactual rates based on legislated changes in the tax schedule I find that higher marginal tax rates reduce income mobility An increase in one percentage point in marginal tax rates causes a decline of around 08% in the probability of changing to a different income decile Tax reforms that reduce marginal rates by 7 percentage points are estimated to account for around a tenth of the average movements in the income distribution in a year Additional results suggest that the effect of taxes on income mobility differs according to the level of human capital and that it is particularly significant when considering mobility at the bottom of the distribution
3 citations
Cites background or methods from "Income inequality and income mobili..."
...In a similar vein, the normalised trace index (NTI) proposed by Shorrocks (1978b) uses the elements in the diagonal of P to measure mobility:...
[...]
...In a similar vein, the normalised trace index (NTI) proposed by Shorrocks (1978b) uses the elements in the diagonal of P to measure mobility: NTI = N − trace(P ) N − 1 When P is the identity matrix, the sum of the diagonal of matrix P is equal to N and the NTI becomes 0....
[...]
...My paper relates to an extensive literature on income mobility surveyed in Fields and Ok (1999) and Jäntti and Jenkins (2015).8 Early works on the measurement of income mobility include Shorrocks (1978a) and Shorrocks (1978b), which lay down many of the tools currently used to measure mobility....
[...]
Dissertation•
01 Jan 2009
TL;DR: The authors employ a dynamic multinomial logit model with discrete factor approximation for the specification of unobserved individual heterogeneity and Wooldridge's approach for controlling the endogeneity problem of initial conditions The dynamic structural of the model is assumed to follow a first order Markov process.
Abstract: This dissertation contains three essays in labour market mobility These essays employ a dynamic multinomial logit model with discrete factor approximation for the specification of unobserved individual heterogeneity and Wooldridge's approach for controlling the endogeneity problem of initial conditions The dynamic structural of the model is assumed to follow a first order Markov process The data is taken from longitudinal levels of Statistics Canada's Survey of Labour and Income Dynamics ( SLID ) and is restricted to males aged 25 to 55 between 1993 and 2004 I examine and discuss the importance of structural and spurious state dependence in three different aspects of labour market mobility Relevant policy implications are discussed The first essay compares immigrants and natives in self-employment transitions among four mutually exclusive and exhaustive states of paid-employment, self-employment, unemployment, and being out of the labour force The second essay explores the factors explaining immigrant-native differences in stability, downward, and upward wage mobility rates The final essay provides a comprehensive research on earnings dynamics of immigrants and natives within and between Canada and Denmark This essay also employs Danish administrative registered dataset for the period 1994-2003 Empirical results show that state dependence exists in all states of labour market mobility with different degrees for immigrants and natives Not all observed persistence is structural, some portion is due to the unobservable factors
3 citations
Cites background from "Income inequality and income mobili..."
...prime (25-35), middle (36-45), and older (46-55)....
[...]
...Married" Origin (Developed)(4) Age (25-35) Age (55-45) Age(45-55) Experience < 8 years Experience 8-16 years Experience >I6 years Number of Observations Immigrants...
[...]
TL;DR: In this article, the authors studied the relationship between inequality in the annual earnings distribution and subannual inequality and mobility during the course of the year, and showed that the mobility component of the decomposition, as measured by Gini correlation coefficients, changes over the observation period.
Abstract: We study the relationships, for the case of Germany, between inequality in the annual earnings distribution, and subannual inequality and mobility during the course of the year. The study builds on an exact decomposition framework outlined in Wodon and Yitzhaki (2003), and in Yitzhaki and Wodon (2004). The study shows that inequality in the subannual monthly earnings distributions is significantly higher than in the annual earnings distribution. Further, it shows that the mobility component of the decomposition, as measured by Gini correlation coefficients, changes over the observation period. That it changes makes it difficult to predict the impact of the income accounting period on inequality in a more general context. Thus, in distributional analyses it is of paramount importance to use income data from a uniform accounting period.
2 citations
Cites background from "Income inequality and income mobili..."
...Shorrocks (1978a) has shown that inequality and the IAP are negatively related under quite general conditions....
[...]
...This is because an extension of the accounting period from a month to a year evens out subannual earnings fluctuations (Shorrocks, 1978a)....
[...]
TL;DR: In this paper, a framework for the quantitative analysis of individual income dynamics, mobility, and welfare is presented, with ex ante identical individuals facing a stochastic income process and market.
Abstract: This paper presents a framework for the quantitative analysis of individual income dynamics, mobility, and welfare, with ex ante identical individuals facing a stochastic income process and market ...
2 citations
01 Jan 2012
2 citations
Cites methods from "Income inequality and income mobili..."
...This is a common approach adopted from the early literature on earnings and income mobility (for example, Shorrock, 1978)....
[...]
References
More filters
TL;DR: This article used Social Security Administration longitudinal earnings micro data since 1937 to analyze the evolution of inequality and mobility in the United States and found that long-term mobility among all workers has increased since the 1950s but has slightly declined among men.
Abstract: This paper uses Social Security Administration longitudinal earnings micro data since 1937 to analyze the evolution of inequality and mobility in the United States. Annual earnings inequality is U-shaped, decreasing sharply up to 1953 and increasing steadily afterward. Short-term earnings mobility measures are stable over the full period except for a temporary surge during World War II. Virtually all of the increase in the variance in annual (log) earnings since 1970 is due to increase in the variance of permanent earnings (as opposed to transitory earnings). Mobility at the top of the earnings distribution is stable and has not mitigated the dramatic increase in annual earnings concentration since the 1970s. Long-term mobility among all workers has increased since the 1950s but has slightly declined among men. The decrease in the gender earnings gap and the resulting substantial increase in upward mobility over a lifetime for women are the driving force behind the increase in long-term mobility among all workers.
546 citations
TL;DR: In this paper, the authors estimate trends in intergenerational economic mobility by matching men in the Census to synthetic parents in the prior generation, finding that mobility increased from 1950 to 1980 but has declined sharply since 1980.
Abstract: We estimate trends in intergenerational economic mobility by matching men in the Census to synthetic parents in the prior generation. We find that mobility increased from 1950 to 1980 but has declined sharply since 1980. While our estimator places greater weight on location effects than the standard intergenerational coefficient, the size of the bias appears to be small. Our preferred results suggest that earnings are regressing to the mean more slowly now than at any time since World War II, causing economic differences between families to become more persistent. However, current rates of positional mobility appear historically normal.
239 citations
TL;DR: Gender- and age-related changes in sexual orientation identity from early adolescence through emerging adulthood in 13,840 youth ages 12–25 employing mobility measure M, a measure modified from its original application for econometrics is described.
Abstract: This study investigated stability and change in self-reported sexual orientation identity over time in youth. We describe gender- and age-related changes in sexual orientation identity from early adolescence through emerging adulthood in 13,840 youth ages 12–25 employing mobility measure M, a measure we modified from its original application for econometrics. Using prospective data from a large, ongoing cohort of U.S. adolescents, we examined mobility in sexual orientation identity in youth with up to four waves of data. Ten percent of males and 20% of females at some point described themselves as a sexual minority, while 2% of both males and females reported ever being “unsure” of their orientation. Two novel findings emerged regarding gender and mobility: (1) Although mobility scores were quite low for the full cohort, females reported significantly higher mobility than did males. (2) As expected, for sexual minorities, mobility scores were appreciably higher than for the full cohort; however, the gender difference appeared to be eliminated, indicating that changing reported sexual orientation identity throughout adolescence occurred at a similar rate in female and male sexual minorities. In addition, we found that, of those who described themselves as “unsure” of their orientation identity at any point, 66% identified as completely heterosexual at other reports and never went on to describe themselves as a sexual minority. Age was positively associated with endorsing a sexual-minority orientation identity. We discuss substantive and methodological implications of our findings for understanding development of sexual orientation identity in young people.
193 citations
[...]
01 Jan 2013
TL;DR: In this article, the authors survey the literature on income mobility, aiming to provide an integrated discussion of mobility within and between-generations, and review mobility concepts, descriptive devices, measurement methods, data sources, and recent empirical evidence.
Abstract: We survey the literature on income mobility, aiming to provide an integrated discussion of mobility within- and between-generations. We review mobility concepts, descriptive devices, measurement methods, data sources, and recent empirical evidence.
156 citations
TL;DR: This article developed a new class of measures of mobility as an equalizer of longer-term incomes, a concept different from other notions such as mobility as time-independence, positional movement, share movement, income flux, and directional income movement.
Abstract: This paper develops a new class of measures of mobility as an equalizer of longer-term incomes—a concept different from other notions such as mobility as time-independence, positional movement, share movement, income flux, and directional income movement. A number of properties are specified leading to a class of indices, one easily-implementable member of which is applied to data for the USA and France. Using this index, income mobility is found to have equalized longer-term earnings among US men in the 1970s but not in the 1980s or 1990s. In France, though, income mobility was equalizing throughout, and it has attained its maximum in the most recent period.
150 citations