History dependent growth incidence: A characterisation and an application to the economic crisis in Italy

Flaviana Palmisano and Dirk Van de gaer

No 314, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: We propose a characterisation of an aggregate measure of growth that takes into account the initial economic conditions of individuals. Our measure is a weighted average of individual income growth with weights that are decreasing with the rank of the individual in the initial income distribution. We apply our theoretical framework to evaluate the growth processes experienced by the Italian population in the last decade and find that the 2008-2010 crisis deteriorated the income growth of the initially poor disproportionately. This is compatible with the dual nature of the Italian labour market.

Keywords: Individual income growth; directional income mobility; pro-poor growth; economic crisis. (search for similar items in EconPapers)
JEL-codes: D31 D63 I32 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-11
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: History-dependent growth incidence: a characterization and an application to the economic crisis in Italy (2016)
Working Paper: History-dependent growth incidence: a characterization and an application to the economic crisis in Italy (2016)
Working Paper: History dependent growth incidence: a characterization and an application to the economic crisis in Italy (2013)
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