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Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches

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  • Robert Duval-Hernández
  • Gary S. Fields
  • George H. Jakubson

Abstract

We reconcile, both theoretically and empirically, changes in inequality with panel income changes over periods of economic growth and decline. We also explore what factors account for the trends of short-run inequality and of inequality in individual average earnings. Finally, we explore what factors account for the equalization brought about by economic mobility. Using panel earnings data from Mexico we find that earnings changes are convergent, irrespective of whether inequality rises or falls.

Suggested Citation

  • Robert Duval-Hernández & Gary S. Fields & George H. Jakubson, 2015. "Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches," WIDER Working Paper Series wp-2015-026, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2015-026
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2015-026.pdf
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    References listed on IDEAS

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    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Myeong‐Su Yun, 2006. "Earnings Inequality In Usa, 1969–99: Comparing Inequality Using Earnings Equations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 127-144, March.
    3. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    4. Gary Fields, 2010. "Does income mobility equalize longer-term incomes? New measures of an old concept," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 409-427, December.
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