Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/126370 
Year of Publication: 
2015
Series/Report no.: 
WIDER Working Paper No. 2015/026
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
We reconcile, both theoretically and empirically, changes in inequality with panel income changes over periods of economic growth and decline. We also explore what factors account for the trends of short-run inequality and of inequality in individual average earnings. Finally, we explore what factors account for the equalization brought about by economic mobility. Using panel earnings data from Mexico we find that earnings changes are convergent, irrespective of whether inequality rises or falls. This is caused by a small fraction of individuals experiencing large and convergent earnings changes. The equalization that earnings changes bring over a year is mainly driven by changes in the employment and sector of workers.
Subjects: 
income inequality
economic mobility
JEL: 
J31
D63
Persistent Identifier of the first edition: 
ISBN: 
978-92-9230-911-4
Document Type: 
Working Paper

Files in This Item:
File
Size
346.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.