Measuring Absolute Income Mobility: Lessons from North America and Europe

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2024
Volume: 16
Issue: 2
Pages: 1-30

Authors (14)

Robert Manduca (not in RePEc) Maximilian Hell (not in RePEc) Adrian Adermon (Government of Sweden) Jo Blanden (not in RePEc) Espen Bratberg (not in RePEc) Anne C. Gielen (Erasmus Universiteit Rotterdam) Hans van Kippersluis (not in RePEc) Keunbok Lee (not in RePEc) Stephen Machin (London School of Economics (LS...) Martin D. Munk (not in RePEc) Martin Nybom (Government of Sweden) Yuri Ostrovsky (Government of Canada) Sumaiya Rahman Outi Sirniö (not in RePEc)

Score contribution per author:

0.287 = (α=2.01 / 14 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income mobility. We show that the commonly used "copula and marginals" approximation methods perform well across countries in our sample, and the greatest challenges to their accuracy stem not from assumptions about relative mobility rates over time but from the use of nonrepresentative marginal income distributions. We also provide a multicountry analysis of sensitivity to specification decisions related to age of income measurement, income concept, family structure, and price index.

Technical Details

RePEc Handle
repec:aea:aejapp:v:16:y:2024:i:2:p:1-30
Journal Field
General
Author Count
14
Added to Database
2026-01-24