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What determines income mobility differences across the European Union?
In this paper we use the European Community Household Panel (ECHP) to assess differences in the structure of income mobility in a selected sample of European countries. The principal determinants of mobility are analysed by means of different decomposition exercises. We adopt recent theoretical proposals for the decomposition of axiomatic and welfare measurements of mobility in exchange, structural and growth components. Decomposition exercises which take into account some type of division of the population and income sources are also performed. Results show that in general income growth has a very limited effect upon aggregate mobility, being the most important determinant the rerankings of individuals, with a little weight for inequality changes. Decomposition exercises both by population groups and by of income sources allow us to relate differences in observed mobility levels to possible country-specific determining factors. Although some common results exist concerning the delimitation of groups experiencing the greatest income fluctuations, such as individuals belonging to single-parent households or young household heads, the intensity of these results varies greatly across countries.
Ayala, Luis, Sastre Mercedes (2002 Nov.) 'What determines income mobility differences across the European Union?', ISER WORKING PAPERS, 2002-27. Colchester: Institute for Social and Economic Research: University of Essex.
Luis Ayala, Mercedes Sastre
Countries included
France, Germany, Italy, Spain, United Kingdom
ECHP Waves
1994, 1995, 1996, 1997, 1998
Institutions Involved
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