Short-term household income mobility before and after the Great Recession: A four-country study

Elizabeth Casabianca () and Elena Giarda ()

Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) from Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi"

Abstract: This paper analyses short-term intra-generational income mobility in France, Italy, Spain and the UK by exploiting the longitudinal component of EU-SILC for the periods 2005-2008 and 2012-2015. We investigate whether and to what extent the ability of households to move along the income distribution changed after the 2008 crisis and whether heterogeneities among countries exist. For this purpose, we employ mobility indexes and transition matrices as well as estimation of a 2SLS regression and of a dynamic ordered probit with random effects. Overall, indexes and transition matrices point to a decrease of mobility in the aftermath of the crisis. The econometric analyses suggest both the existence of a convergence process of incomes and state dependence of current and lagged income in both periods. We also observe sluggish income convergence and lower upward mobility in the second period. Among the microeconomic drivers, education and employment status are positive determinants of mobility. Finally, our results confirm cross-country heterogeneity.

Keywords: intra-generational income mobility; mobility indexes; 2SLS; dynamic ordered probit; EU-SILC (search for similar items in EconPapers)
JEL-codes: C25 C26 D31 J60 (search for similar items in EconPapers)
Pages: pages 41
Date: 2019-06
New Economics Papers: this item is included in nep-eur and nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://155.185.68.2/CefinPaper/CEFIN-WP76.pdf (application/pdf)

Related works:
Journal Article: Household income dynamics in Europe before and after the Great Recession: A four-country analysis (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mod:wcefin:0076

Access Statistics for this paper

More papers in Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) from Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi" Contact information at EDIRC.
Bibliographic data for series maintained by Giuseppe Marotta ().