Trends in individual income growth: measurement methods and British evidence

Stephen Jenkins and Philippe Van Kerm

No 2011-21, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: Assessments of whose income growth is the greatest and whose is the smallest are typically based on comparisons of income changes for income groups (e.g. rich versus poor) or income values (e.g. quantiles). However, income group and quantile composition changes over time because of income mobility. To summarize patterns of income growth while also tracking the fortunes of the same individuals, a longitudinal perspective is required. For this case, we develop dominance conditions and summary indices for comparisons of distributions of individual income growth, together with associated methods of estimation and inference. Using these methods and data from the British Household Panel Survey, we study individual income growth for periods between 1991 and 2005. We show that income growth was signi?cantly more pro-poor in the early years of the Labour government than in earlier Conservative years.

Keywords: individual income growth; pro-poor growth; progressive income growth; income mobility; mobility profile; British Household Panel Survey (search for similar items in EconPapers)
JEL-codes: D31 D63 I32 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2011-02
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (34)

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Related works:
Working Paper: Trends in individual income growth: measurement Methods and British evidence (2011)
Working Paper: Trends in individual income growth: measurement methods and British evidence (2011)
Working Paper: Trends in Individual Income Growth: Measurement Methods and British Evidence (2011)
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