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Illustrating income mobility: new measures

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  • John Creedy
  • Norman Gemmell

Abstract

Over two decades ago, Jenkins and Lambert demonstrated that alternative measures of poverty could be combined using the ‘Three Is of Poverty’ (TIP) curve; the ‘three Is’ being the incidence, intensity and inequality of poverty. This paper first takes these TIP curve insights and applies them to income growth based measures of mobility, proposing a new ‘Three Is of Mobility’ (TIM) curve. Secondly, the paper proposes new illustrative devices for income mobility measured as positional change, or re-ranking, within the income distribution: labelled ‘re-ranking curves’. Illustrations use data from random samples of New Zealand income taxpayers between 1998 and 2010. These mobility curves represent simple graphical devices that conveniently illustrate the ‘three Is’ properties of income mobility.

Suggested Citation

  • John Creedy & Norman Gemmell, 2019. "Illustrating income mobility: new measures," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 733-755.
    • Handle: RePEc:oup:oxecpp:v:71:y:2019:i:3:p:733-755.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy057
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    Citations

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    Cited by:

    1. John Creedy & Norman Gemmell, 2022. "Illustrating Income Mobility and Poverty Persistence," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 309-323, June.
    2. John Creedy & Norman Gemmell, 2022. "Illustrating Income Mobility and Poverty Persistence," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 309-323, June.
    3. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Income Inequality and the Accounting Period in New Zealand: Evidence from Administrative Data," Working Paper Series 21899, Victoria University of Wellington, Chair in Public Finance.
    4. Alinaghi, Nazila & Creedy, John & Gemmell, Norman, 2022. "Inter-Decile Income Movements of Individuals in New Zealand: Evidence from Administrative Data," Working Paper Series 21357, Victoria University of Wellington, Chair in Public Finance.
    5. Ashley Pullman & Britta Gauly & Clemens M. Lechner, 2021. "Short-term earnings mobility in the Canadian and German context: the role of cognitive skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-19, December.
    6. John Creedy & S. Subramanian, 2023. "Mortality comparisons and age: a new mortality curve," New Zealand Economic Papers, Taylor & Francis Journals, vol. 57(1), pages 18-30, January.
    7. David (David Patrick) Madden, 2019. "BMI Mobility and Obesity Transitions Among Children in Ireland," Working Papers 201922, School of Economics, University College Dublin.
    8. Creedy, John & Gemmell, Norman, 2022. "Summary Measures of Equalising Income Mobility Based on ‘Three Is of Mobility’ Curves," Working Paper Series 22008, Victoria University of Wellington, Chair in Public Finance.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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