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Measuring Upward Mobility

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  • Debraj Ray
  • Garance Genicot

Abstract

We conceptualize and measure upward mobility over income or wealth. At the core of our exercise is the Growth Progressivity Axiom: transfers of instantaneous growth rates from relatively rich to poor individuals increases upward mobility. This axiom, along with mild auxiliary restrictions, identifies an "upward mobility kernel" with a single free parameter, in which mobility is linear in individual growth rates, with geometrically declining weights on baseline incomes. We extend this kernel to trajectories over intervals. The analysis delivers an upward mobility index that does not rely on panel data. That significantly expands our analytical scope to data-poor settings.

Suggested Citation

  • Debraj Ray & Garance Genicot, 2023. "Measuring Upward Mobility," American Economic Review, American Economic Association, vol. 113(11), pages 3044-3089, November.
    • Handle: RePEc:aea:aecrev:v:113:y:2023:i:11:p:3044-89
    DOI: 10.1257/aer.20220316
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    1. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
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    Cited by:

    1. John H.Y. Edwards, 2024. "Education Quality, Income Inequality, and Female Labor Force Participation in Brazil," Working Papers 2409, Tulane University, Department of Economics.
    2. Ganesh Karapakula, 2022. "An Axiomatic Framework for Cost-Benefit Analysis," Papers 2207.13033, arXiv.org.
    3. Elvisa Drishti & Zamira Shkreli & Edvin Zhllima & Blendi Gerdoçi, 2023. "Deprivation, Social Mobility Considerations, and Life Satisfaction: A Comparative Study of 33 European Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(3), pages 511-550, September.
    4. Justin T. Callais & Vincent Geloso, 2023. "Intergenerational income mobility and economic freedom," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 732-753, January.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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