Kosny, M, Silber, J and Yalonetzky, G orcid.org/0000-0003-2438-0223 (2020) On the Measurement of Multi-Period Income Mobility. Inequality, Redistribution and Mobility (Research on Economic Inequality, 28. pp. 97-122. ISSN 1049-2585
Abstract
We propose a framework for the measurement of income mobility over several time periods, based on the notion that multi-period mobility amounts to measuring the degree of association between the individuals and the time periods. More precisely we compare the actual income share of individuals at a given time in the total income of all individuals over the whole period analyzed, with their “expected” share, assumed to be equal to the hypothetical income share in the total income of society over the whole accounting period that an individual would have had at a given time, had there been complete independence between the individuals and the time periods. We then show that an appropriate way of consistently measuring multi-period mobility should focus on the absolute rather than the traditional (relative) Lorenz curve and that the relevant variable to be accumulated should be the difference between the “a priori” and “a posteriori” shares previously defined. Moving from an ordinal to a cardinal approach to measuring multi-period mobility, we then propose classes of mobility indices based on absolute inequality indices. We illustrate our approach with an empirical application using the EU-SILC rotating panel dataset. Our empirical analysis seems to vindicate our approach because it clearly shows that income mobility was higher in the new EU countries (those that joined the EU in 2004 and later). We also observe that income mobility after 2008 was higher in three countries that were particularly affected by the financial crisis: Greece, Portugal, and Spain.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Emerald Publishing Limited. This is an author produced version of an article published in Inequality, Redistribution and Mobility:Research on Economic Inequality . Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Absolute Gini index; Absolute Lorenz curve; EU-SILC; Financial crisis; Independence; Multi-period mobility; D31; D63 |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 23 Mar 2020 16:03 |
Last Modified: | 18 Nov 2020 21:03 |
Status: | Published |
Publisher: | Emerald |
Identification Number: | 10.1108/S1049-258520200000028004 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:158621 |