Measurement of Multi-Period Income Mobility with Contingency Tables

Abstract

We propose a framework for the measurement of income mobility over several time periods, based on the notion that multi-period mobility amounts to measuring the degree of association between the individuals and the time periods in a contingency table. We provide both indices and a pre-ordering condition for multi-period mobility assessments. We illustrate our approach with an empirical application using the EU-SILC rotating panel dataset.

Keywords: Multi-period mobility, Lorenz curve

JEL Classification: D31, D63