nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2016‒03‒10
two papers chosen by
Maximo Rossi
Universidad de la República

  1. More Unequal, But More Mobile? Earnings Inequality and Mobility in OECD Countries By Garnero, Andrea; Hijzen, Alexander; Martin, Sébastien
  2. What do Germans think and know about income inequality? A survey experiment By Carina Engelhardt; Andreas Wagener

  1. By: Garnero, Andrea (OECD); Hijzen, Alexander (OECD); Martin, Sébastien (OECD)
    Abstract: This paper provides comprehensive cross-country evidence on the relationship between earnings inequality and intra-generational mobility by simulating individual earnings and employment trajectories in the long-term using short panel data for 24 OECD countries. On average across countries, about 25% of earnings inequality in a given year evens out over the life cycle as a result of mobility. Moreover, mobility is not systematically higher in countries with more earnings inequality in general. However, a positive and statistically significant relationship is found only in the bottom of the distribution. This reflects the role of mobility between employment and unemployment and not that of mobility up and down the earnings ladder.
    Keywords: intra-generational mobility, life-time inequality, earnings-experience profiles, simulation
    JEL: E24 J30 J62 O57
    Date: 2016–02
  2. By: Carina Engelhardt (Leibniz University of Hannover, School of Economics and Management); Andreas Wagener (Leibniz University of Hannover, School of Economics and Management)
    Abstract: Germans are unable to assess their own position in the income distribution of their country and do not know much about income inequality and stratification. They are well aware of their ignorance. Germans would prefer society to be more egalitarian than they perceive it. Providing accurate information about the income distribution does not change this preference for more redistribution – except among those who learn that they are net contributors in the German tax-transfer system.
    Keywords: Biased perceptions, preferences for redistribution, Germany.
    JEL: H53 D72 D31
    Date: 2016–01

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