Evaluating Economic Mobility under Opportunity Egalitarianism
International Journal of Economics and Finance, 2017, vol. 9, issue 12, 260-277
While inter-generational income mobility is commonly understood to be socially desirable in that it promotes equality of life chances, social desirability of intra-generational income mobility is a much more controversial issue, which is known to be concerned with inequality and uncertainty effects, as well as aversion to income fluctuations. In this paper social welfare effects of intra-generational income mobility are investigated from the perspective of an opportunity egalitarian social planner. We show that, given the trade-off between inequality and uncertainty effects, social desirability of income mobility strongly depends on the characteristics of income switchings which are required to be rewarding the more deserving individuals and/or compensating the unluckier ones. In this sense, we suggest that egalitarianism of opportunity, more than aversion to intertemporal fluctuations, is crucial for motivating the optimality of empirically observed low degrees of income mobility as compared to perfect mobility processes (complete reversal).
Keywords: intra-generational mobility; inequality of opportunity; social welfare (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Evaluating economic mobility under opportunity egalitarianism (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:9:y:2017:i:12:p:260-277
Access Statistics for this article
More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().