IDEAS home Printed from https://ideas.repec.org/p/vuw/vuwcpf/21357.html
   My bibliography  Save this paper

Inter-Decile Income Movements of Individuals in New Zealand: Evidence from Administrative Data

Author

Listed:
  • Alinaghi, Nazila
  • Creedy, John
  • Gemmell, Norman

Abstract

This paper provides an empirical description of the income mobility of individual incomes in New Zealand over the period 2002 to 2017, using information from transition matrices. These capture movements of individual taxpayers between deciles of the income distribution over periods ranging from one to fifteen years. Transitions for sample decompositions by age, gender, ethnicity and education level are also explored. Though 1-year transitions indicate considerable inertia or stability, a relatively high degree of movement between deciles is observed across most of the distribution over longer periods. Different age, gender, ethnicity and educational qualification decompositions reveal remarkably similar patterns of inter-decile movement.

Suggested Citation

  • 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.
    • Handle: RePEc:vuw:vuwcpf:21357
    as

    Download full text from publisher

    File URL: https://ir.wgtn.ac.nz/handle/123456789/21357
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
    3. Trinh Le & John Gibson & Les Oxley, 2006. "A Forward‐Looking Measure Of The Stock Of Human Capital In New Zealand," Manchester School, University of Manchester, vol. 74(5), pages 593-609, September.
    4. Creedy, John, 1979. "The Inequality of Earnings and the Accounting Period," Scottish Journal of Political Economy, Scottish Economic Society, vol. 26(1), pages 89-96, February.
    5. Christopher Ball & John Creedy, 2016. "Inequality in New Zealand 1983/84 to 2012/13," New Zealand Economic Papers, Taylor & Francis Journals, vol. 50(3), pages 323-342, September.
    6. Rolf Aaberge & Anders Björklund & Markus Jäntti & Mårten Palme & Peder J. Pedersen & Nina Smith & Tom Wennemo, 2002. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 443-469, December.
    7. 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.
    8. John Creedy, 2017. "Alternative Distributions for Inequality Comparisons," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(4), pages 484-497, December.
    9. John Creedy & Norman Gemmell, 2018. "Income Dynamics, Pro‐Poor Mobility and Poverty Persistence Curves," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 316-328, September.
    10. Creedy, J, 1996. "Income Dynamics Over the Life Cycle: New Evidence for New Zealand," Department of Economics - Working Papers Series 511, The University of Melbourne.
    11. John Creedy & Norman Gemmell, 2019. "Illustrating income mobility: new measures," Oxford Economic Papers, Oxford University Press, vol. 71(3), pages 733-755.
    12. John Creedy & Cath Sleeman, 2005. "Adult equivalence scales, inequality and poverty," New Zealand Economic Papers, Taylor & Francis Journals, vol. 39(1), pages 51-81.
    13. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
    14. Creedy, John, 1974. "Income Changes Over the Life Cycle," Oxford Economic Papers, Oxford University Press, vol. 26(3), pages 405-423, November.
    15. John Creedy & Norman Gemmell & Athene Laws, 2021. "Relative income dynamics of individuals in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(2), pages 203-220, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Creedy, John & Quy, Ta, 2022. "Income Mobility in New Zealand 2007–2020: Combining Household Survey and Census Data," Working Paper Series 25797, Victoria University of Wellington, Chair in Public Finance.
    4. 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.
    5. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Aart Kraay & Roy Weide, 2022. "Measuring intragenerational mobility using aggregate data," Journal of Economic Growth, Springer, vol. 27(2), pages 273-314, June.
    7. 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.
    8. 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.
    9. Satya R. Chakravarty & Nachiketa Chattopadhyay & Nora Lustig & Rodrigo Aranda, 2020. "Measuring Directional Mobility: The Bartholomew and Prais-Bibby Indices Reconsidered," Research on Economic Inequality, in: Inequality, Redistribution and Mobility, volume 28, pages 75-96, Emerald Group Publishing Limited.
    10. Sanghamitra Bandyopadhyay & Gaston Yalonetzky, 2016. "An individual-based approach to measurement of multiple-period mobility for nominal and ordinal variables," Working Papers 65, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    11. Michael Savage, 2016. "Poorest Made Poorer? Decomposing income losses at the bottom of the income distribution during the Great Recession," Papers WP528, Economic and Social Research Institute (ESRI).
    12. Andrew J. Houtenville, 2001. "Income Mobility in the United States and Germany: A Comparison of Two Classes of Mobility Measures using the GSOEP, PSID, and CPS," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 59-65.
    13. Garnero, Andrea & Hijzen, Alexander & Martin, Sébastien, 2019. "More unequal, but more mobile? Earnings inequality and mobility in OECD countries," Labour Economics, Elsevier, vol. 56(C), pages 26-35.
    14. Creedy, John & Gemmell, Norman, 2018. "Income Inequality in New Zealand: Why Conventional Estimates are Misleading," Working Paper Series 7629, Victoria University of Wellington, Chair in Public Finance.
    15. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Ad libros publications inc., vol. 13(1-2), pages 4-4, March-Jun.
    16. Moshe Justman & Hadas Stiassnie, 2021. "Intergenerational Mobility in Lifetime Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 928-949, December.
    17. Sami Bibi & Jean-Yves Duclos & Abdelkrim Araar, 2014. "Mobility, taxation and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(3), pages 503-527, March.
    18. Thomas Demuynck & Dirk Van de gaer, 2012. "Inequality Adjusted Income Growth," Economica, London School of Economics and Political Science, vol. 79(316), pages 747-765, October.
    19. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 191-208.
    20. Rodrigo Arim & Matías Brum & Andrés Dean & Martín Leites & Gonzalo Salas, 2013. "Movilidad de ingreso y trampas de pobreza: nueva evidencia para los países del Cono sur," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 28(1), pages 3-38.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vuw:vuwcpf:21357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library Technology Services (email available below). General contact details of provider: https://edirc.repec.org/data/fcvuwnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.