Changing Income Inequality and Panel Income Changes

Robert Duval Hernández (), Gary Fields () and George H. Jakubson ()
Additional contact information
Robert Duval Hernández: Open University of Cyprus
George H. Jakubson: Cornell University
Authors registered in the RePEc Author Service: Robert Duval-Hernandez ()

No 9022, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: When economic growth (or economic decline) takes place, who benefits and who is hurt how much? The more traditional way of answering this question is to compare two or more comparable cross sections and gauge changing income inequality among countries or individuals. A newer way is to utilize data on a panel of countries or a panel of people and assess the pattern of panel income changes. How do these two approaches relate to one another? This paper shows, first, that it is possible to have all four combinations – rising or falling inequality and divergent or convergent panel income changes, and second, under what conditions, for various measures of rising/falling inequality and various measures of divergent/convergent income changes, each of the four possible combinations can arise.

Keywords: income inequality; economic mobility (search for similar items in EconPapers)
JEL-codes: D63 J31 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2015-04
New Economics Papers: this item is included in nep-hpe, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Changing income inequality and panel income changes (2015)
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