Comparing Income Mobility In Germany And The United States Using Generalized Entropy Mobility Measures

Esfandiar Maasoumi and Mark Trede ()

The Review of Economics and Statistics, 2001, vol. 83, issue 3, 551-559

Abstract: Based on a derivation of the asymptotic sampling distribution of the generalized entropy mobility measures, this paper provides a statistically rigorous analysis of income mobility in Germany and the United States using the panel data set PSID-SOEP equivalent data file. Several alternative measures of income aggregation, inequality measures, and groupings are considered to establish robustness. We find that, to a high degree of statistical confidence, post-government income mobility is much higher in Germany. Possible reasons for these findings are revealed through disaggregation of the samples by population subgroups. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 2001
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