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Labor Mobility, Job Preferences, and Income Distribution

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  • Alvaro Montenegro

Abstract

A model is presented to illustrate the role of labor mobility in income distribution. Worker preference for different occupations and wage comparisons are combined to determine the allocation of labor between sectors and to trace the behavior of the Gini coefficient as mobility increases. The Gini coefficient fails to fall monotonically with increasing labor mobility, making its interpretation ambiguous. It is also shown that the Gini coefficient has a lower nonzero limit, a fact compatible with empirical findings.

Suggested Citation

  • Alvaro Montenegro, 2003. "Labor Mobility, Job Preferences, and Income Distribution," LABOUR, CEIS, vol. 17(1), pages 93-102, March.
    • Handle: RePEc:bla:labour:v:17:y:2003:i:1:p:93-102
    DOI: 10.1111/1467-9914.00223
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    References listed on IDEAS

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    3. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    4. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
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