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Comparing Income Mobility in Germany and the United States Using Generalized Entropy Mobility Measures

Esfandiar Maasoumi and Mark Trede
The Review of Economics and Statistics
Vol. 83, No. 3 (Aug., 2001), pp. 551-559
Published by: MIT Press
Stable URL: http://www.jstor.org/stable/3211555
Page Count: 9
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Comparing Income Mobility in Germany and the United States Using Generalized Entropy Mobility Measures
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Abstract

Based on a derivation of the asymptotic sampling distribution of the generalized entropy mobility measures, this paper provides a statistically rigorous analysis of income mobility in Germany and the United States using the panel data set PSID-SOEP equivalent data file. Several alternative measures of income aggregation, inequality measures, and groupings are considered to establish robustness. We find that, to a high degree of statistical confidence, post-government income mobility is much higher in Germany. Possible reasons for these findings are revealed through disaggregation of the samples by population subgroups.

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