Abstract:
The amount of flexibility in the "earnings market" has attracted the interest of many researchers during the last two decades. Given a heterogeneous population, it has been shown that results strongly depends on equivalence scales and related initial definitions. In this paper we argue that in order to rank income distributions over income mobility there are strong theoretical and empirical reasons to support the idea of equivalent adult. It is shown that the implementation of the individual equivalent income approach causes over-weightening of income mobility in the case of a high proportion of large families. Then, income mobility is estimated considering equivalent adults over seven countries and five waves (ECHP - PSID) in such a way to allow for an immediate comparison with existing empirical studies.
Ordering information: This working paper can be ordered from Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK http://www.iser.essex.ac.uk/publications/
More papers in ISER working papers from Institute for Social and Economic Research Address: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK Series data maintained by Paul Groves ().
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