Measuring absolute income mobility: lessons from North America and Europe

Robert Manduca, Maximilian Hell, Adrian Adermon, Jo Blanden, Espen Bratberg, Anne C. Gielen, Hans Van Kippersluis, Keun Bok Lee, Stephen Machin, Martin D. Munk, Martin Nybom, Yuri Ostrovsky, Sumaiya Rahman and Outi Sirnio

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We use linked parent–child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income mobility. We show that the commonly used “copula and marginals” approximation methods perform well across countries in our sample, and the greatest challenges to their accuracy stem not from assumptions about relative mobility rates over time but from the use of nonrepresentative marginal income distributions. We also provide a multicountry analysis of sensitivity to specification decisions related to age of income measurement, income concept, family structure, and price index.

Keywords: Consolidator grant ERC-2013-CoG-617965 (Sirniö). Page 1 of 130; 724363 (search for similar items in EconPapers)
JEL-codes: D31 E24 J62 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2024-04-01
New Economics Papers: this item is included in nep-eec and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in American Economic Journal: Applied Economics, 1, April, 2024, 16(2), pp. 1 - 30. ISSN: 1945-7782

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Journal Article: Measuring Absolute Income Mobility: Lessons from North America and Europe (2024)
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