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The role of mobility in offsetting inequality: a nonparametric exploration of the CPS

De Fontenay, Catherine; Gorgens, Jakob (Tue); Liu, Haoming


This paper explores how annual earnings mobility offsets annual earnings inequality, using matched CPS data. Mobility in the economy is estimated using nonparametric quantile regression, for which we adapt state-of-the-art smoothing techniques. Mobility is measured through the churning process (changes in earnings given initial earnings) in order to identify different mobility patterns for different earnings groups. For instance, upward mobility in high earners is far weaker than its converse,...[Show more]

CollectionsANU Research Publications
Date published: 2002
Type: Journal article
Source: Review of Income and Wealth


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