Trends in Income Inequality, Pro-Poor Income Growth, and Income Mobility

Posted: 29 Feb 2008

See all articles by Stephen P. Jenkins

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration; Institute for the Study of Labor (IZA); University of Essex - Institute for Social and Economic Research (ISER)

Philippe Van Kerm

Luxembourg Institute of Socio-Economic Research (LISER)

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Date Written: July 2006

Abstract

We provide an analytical framework within which changes in income inequality over time are related to the pattern of income growth across the income range and the reshuffling of individuals in the income pecking order. We use the framework first to explain how it was possible both for the poor to have fared badly relatively to the rich in the USA during the 1980s (when income inequality grew substantially), and also for income growth to have been pro-poor. Second, we contrast the US experience with that of Western Germany, where there was a much smaller rise in inequality. This is accounted for by income growth that was more pro-poor than in the USA.

Keywords: JEL classifications: D31, I32

Suggested Citation

Jenkins, Stephen P. and Van Kerm, Philippe, Trends in Income Inequality, Pro-Poor Income Growth, and Income Mobility (July 2006). Oxford Economic Papers, Vol. 58, No. 3, pp. 531-548, 2006, Available at SSRN: https://ssrn.com/abstract=916874 or http://dx.doi.org/10.1093/oep/gpl014

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 120 687 3374 (Phone)
+44 120 687 3151 (Fax)

Philippe Van Kerm (Contact Author)

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Esch-sur-Alzette, L-4366
Luxembourg

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