The evolution of income classes in terms of inequality of opportunity: A full distributional approach

A. Rebechi, M.G. Pittau, P. VanKerm and Roberto Zelli

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper proposes a full distributional approach to measure the probability of belonging to specific economic classes, which are endogenously determined by the individual s position in the income distribution. Using Australian panel data, we identify pre-determined circumstances associated with class membership. Specifically, we use concomitant variable latent class models to quantify the overlap between distributions and to compare distributional differences and segmentation across social classes and link them to inequality of opportunity. Given the renewed interest in social class dynamics and the growing socioeconomic relevance and political salience of class membership, this study provides important insights into the composition of socioeconomic classes and their evolution over time.

Keywords: inequality of opportunity; mixture models; Class Membership (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:202509

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