Inequality and mobility of household incomes in Europe: evidence from the ECHP

Abstract

In this paper I want to shed light on two aspects of income mobility: relative total income mobility using the estimator by Fields and Ok [1999] and equalization of long-run incomes measured by the index of Fields [2004]. The cross country comparison shows a negative relationship between total relative mobility and long-run income equalization, this results is contrary to the intuition given by Shorrocks [1978a] who stated, that higher relative mobility will cause higher equalization of incomes when the accounting period is extended.

Wage Inequality and Wage Mobility in Turkey

“…There is a vast literature on the evolution of income mobility which has controversial findings on whether mobility is increasing or decreasing over time. For instance, using Bachmann et al (2012) find that mobility reduces wage inequality and the equalizing effect of mobility mainly occurs within groups using data from SILC for all EU countries as well for Norway and Iceland over the period 2004. Riener (2012 examines income inequality and equalizing effect of income mobility using (ECHP) data from 1995, 1998 and 2001.…”

Wage Inequality and Wage Mobility in Turkey

“…For instance, Buchinsky and Hunt (1999) explore wage mobility and earning distributions for the US using 1979US using -1991 data from the National Longitudinal Survey of Youth and show that mobility reduces wage inequality by 12%-26% when a four-year time horizon is considered, with similar results for annual earnings. Using European Community Household Panel Bachmann et al (2012) find that mobility reduces wage inequality and the equalizing effect of mobility mainly occurs within groups using data from SILC for all EU countries as well for Norway and Iceland over the period 2004-2010. Riener (2012 examines income inequality and equalizing effect of income mobility using (ECHP) data from 1995, 1998 and 2001.…”

Wage Inequality and Wage Mobility in Turkey

“…Using European Community Household Panel (ECHP) over the period 1994-2001, Sologon and O'Donoghue (2009 find an equalizing impact of mobility on income inequality and this impact increases over time in all countries they analyze (Denmark, UK, Belgium, Greece, Ireland, Netherlands, Italy, France, Spain, Germany) except Portugal. Bachmann et al (2012) find that mobility reduces wage inequality and the equalizing effect of mobility mainly occurs within groups using data from SILC for all EU countries as well for Norway and Iceland over the period 2004. Riener (2012 examines income inequality and equalizing effect of income mobility using (ECHP) data from 1995, 1998 and 2001.…”