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A Head‐count Measure of Rank Mobility and its Directional Decomposition

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  • Walter Bossert
  • Burak Can
  • Conchita D'Ambrosio

Abstract

We propose and characterize a new measure of rank mobility. The index is given by the head count of those whose positions change in the move from one period to the next divided by population size. The interpretation of this head‐count ratio is straightforward and intuitive. In addition, we illustrate how the measure can be decomposed into an index of upwards mobility and an index of downwards mobility. The axioms used in our characterization results are appealing and easy to justify. We conclude with an application to the Human Development Index, a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and having a decent standard of living.

Suggested Citation

  • Walter Bossert & Burak Can & Conchita D'Ambrosio, 2018. "A Head‐count Measure of Rank Mobility and its Directional Decomposition," Economica, London School of Economics and Political Science, vol. 85(340), pages 793-807, October.
    • Handle: RePEc:bla:econom:v:85:y:2018:i:340:p:793-807
    DOI: 10.1111/ecca.12256
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    1. Can, Burak & Storcken, Ton, 2018. "A re-characterization of the Kemeny distance," Journal of Mathematical Economics, Elsevier, vol. 79(C), pages 112-116.
    2. D'Agostino, Marcello & Dardanoni, Valentino, 2009. "The measurement of rank mobility," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1783-1803, July.
    3. Anthony B Atkinson & François Bourguignon, 2014. "Handbook of Income Distribution," Post-Print halshs-02923231, HAL.
    4. Walter Bossert & Burak Can & Conchita D’Ambrosio, 2016. "Measuring rank mobility with variable population size," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 917-931, April.
    5. Martin Nybom & Jan Stuhler, 2017. "Biases in Standard Measures of Intergenerational Income Dependence," Journal of Human Resources, University of Wisconsin Press, vol. 52(3), pages 800-825.
    6. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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