INEQUALITY AND PANEL INCOME CHANGES: CONDITIONS FOR POSSIBILITIES AND IMPOSSIBILITIES

• 成果类型: Article
• 署名作者: Duval-Hernandez, Robert; Fields, Gary S.; Jakubson, George H.
• 署名单位: Open University of Cyprus; IZA Institute Labor Economics; Centro de Investigacion y Docencia Economicas A.C. (CIDE); Cornell University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12603
• 发表日期: 2023
• 页码: 295-324
• 关键词: economic-growth; earnings; CONVERGENCE; mobility; DYNAMICS

摘要

Income changes in an economy are usually assessed through the changes over time in cross-sectional variables such as economy-wide inequality. An alternative is to use panel data to gauge income changes among identified income recipients. In this article, we analyze these two approaches taken together, each measured in multiple ways. We establish that under specific conditions, it is impossible to have falling inequality together with divergent panel income changes. We also provide conditions explaining when rising inequality can arise together with convergent panel changes. We provide the intuition behind these results and show when such results fail to hold.