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Differences set in stone: evidence on the inequality-mobility trade off in italy

Author

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  • Francesca Subioli

    (Department of Economics and Law - Sapienza University of Rome)

  • Michele Raitano

    (Department of Economics and Law - Sapienza University of Rome)

Abstract

Observing individual income dynamics is crucial to assess the characteristics of theprocess shaping income inequality and its consequences on individual and social wellbeing.Given the level of cross-sectional inequality, a mobile society faces differentchallenges than one where people are stuck in their income positions for their wholelife or see their income stagnate. Moreover, people prefer a stable income stream toa fluctuating one, and the policy concern should deal with both the level of incomeand its dynamics. Using Italy as our case study, we characterise the long-run evolutionof intragenerational mobility in the last fifty years and find evidence of a trade-offbetween income inequality and ’good’ mobility, and complementarity with the worstnotions ofmobility related to income instability. Exploiting individual-level estimates ofgood and badmobility, we also uncover patterns of unequalmobility – the concentrationof low upward mobility and frequent fluctuations among the most vulnerable groups.

Suggested Citation

  • Francesca Subioli & Michele Raitano, 2022. "Differences set in stone: evidence on the inequality-mobility trade off in italy," Working Papers 633, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2022-633
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    Cited by:

    1. Bavaro, Michele & Raitano, Michele, 2024. "Is working enough to escape poverty? Evidence on low-paid workers in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 495-511.

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    More about this item

    Keywords

    Earnings inequality; Great Gatsby curve; intragenerational mobility; earnings dynamics; unequal mobility; Italy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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