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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

Description

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]

dc.contributor.authorDe Fontenay, Catherine
dc.contributor.authorGorgens, Jakob (Tue)
dc.contributor.authorLiu, Haoming
dc.date.accessioned2015-12-13T23:24:37Z
dc.date.available2015-12-13T23:24:37Z
dc.identifier.issn0034-6586
dc.identifier.urihttp://hdl.handle.net/1885/92301
dc.description.abstractThis 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, downward mobility for low earners. We assess the (positive or negative) contribution to offsetting of each pattern in mobility. Innovations in our approach also allow us to identify trends and minute changes in mobility, and to pinpoint which changes in mobility have offset the increases in inequality observed over the decades.
dc.publisherInternational Association for Research in Income and Wealth
dc.sourceReview of Income and Wealth
dc.titleThe role of mobility in offsetting inequality: a nonparametric exploration of the CPS
dc.typeJournal article
local.description.notesImported from ARIES
local.description.refereedYes
local.identifier.citationvolume48
dc.date.issued2002
local.identifier.absfor140211 - Labour Economics
local.identifier.absfor140302 - Econometric and Statistical Methods
local.identifier.ariespublicationMigratedxPub23351
local.type.statusPublished Version
local.contributor.affiliationDe Fontenay, Catherine, University of Melbourne
local.contributor.affiliationGorgens, Jakob (Tue), College of Business and Economics, ANU
local.contributor.affiliationLiu, Haoming, National University of Singapore
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage347
local.bibliographicCitation.lastpage370
dc.date.updated2015-12-12T09:21:11Z
local.identifier.scopusID2-s2.0-0036742527
CollectionsANU Research Publications

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