Income Mobility in the See Region: A Comparative Analysis with the Eu Countries ()

Jalal El Ouardighi and Rabija Somun-Kapetanovic

Economic Research-Ekonomska Istraživanja, 2011, vol. 24, issue 3, 1-14

Abstract: The aim of this paper is to revisit the broad researches performed on income mobility. To that end, first, we synthesize the commonly used concepts and corresponding measures in three classes, namely, movement, temporal dependence and equalization of incomes. Second, since the unit of analysis is country, we reformulate the mobility indicators to take into account the countries sizes. Third, in the empirical approach, we compare income mobility in the SEE (South-Eastern Europe) region and in the EU (European Union) countries over the 1990-2009 time period. The results suggest that, in the long-term, income mobility is greater in the SEE than in the EU. However, the opposite holds in the last decade. Moreover, income mobility is mostly a divergent process in the SEE region, whereas the EU experienced a convergent mobility. In addition, unlike the EU, income mobility has disequalized longer-term incomes in the SEE region throughout the period of study. Accordingly, these results can serve as a basis for decision-making in the field of regional development policies that are used in the process of European integration.

Date: 2011
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DOI: 10.1080/1331677X.2011.11517464

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