Download or read book Income Mobility and Welfare written by Mr.Tom Krebs and published by International Monetary Fund. This book was released on 2013-01-28 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing measurement error or transitory income shocks and an AR(1) component representing persistent changes in income. We use a tractable consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and derive analytical expressions for income mobility and welfare as a function of the various parameters of the underlying income process. The empirical application of our framework using data on individual incomes from Mexico provides striking results. Much of measured income mobility is driven by measurement error or transitory income shocks and therefore (almost) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare-enhancing catching-up of low-income individuals with high-income individuals, both of which have economically significant effects on social welfare. Decomposing mobility into its fundamental components is thus seen to be crucial from the standpoint of welfare evaluation.
Download or read book Income Mobility Income Risk and Welfare written by Tom Krebs and published by . This book was released on 2017 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a framework for the quantitative analysis of individual income dynamics, mobility and welfare, with ex-ante identical individuals facing a stochastic income process and market incompleteness implying that they are unable to insure against persistent shocks to income. We show how the parameters of the income process can be estimated using repeated cross-sectional data with a short panel dimension, and use a simple consumption-saving model for quantitative analysis of mobility and welfare. Our empirical application, using data on individual incomes from Mexico, provides striking results. Most of measured income mobility is driven by measurement error or transitory income shocks and therefore (almost) welfare-neutral. Only a small part of measured income mobility is due to either welfare-reducing income risk or welfare-enhancing catching-up of low-income individuals with high-income individuals, both of which, nevertheless, have economically significant effects on social welfare. Strikingly, roughly half of the mobility that cannot be attributed to measurement error or transitory income shocks is driven by welfare-reducing persistent income shocks. Decomposing mobility into its fundamental components is thus crucial from the standpoint of welfare evaluation.
Download or read book Income Risk Income Mobility and Welfare written by Tom Krebs and published by . This book was released on 2012 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing measurement error or transitory income shocks and an AR(1) component representing persistent changes in income. We use a tractable consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and derive analytical expressions for income mobility and welfare as a function of the various parameters of the underlying income process. The empirical application of our framework using data on individual incomes from Mexico provides striking results. Much of measured income mobility is driven by measurement error or transitory income shocks and therefore (almost) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare-enhancing catching-up of low-income individuals with high-income individuals, both of which have economically significant effects on social welfare. Decomposing mobility into its fundamental components is thus seen to be crucial from the standpoint of welfare evaluation.
Download or read book Income Risk Income Mobility and Welfare written by Tom Krebs and published by . This book was released on 2012 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Getting Ahead written by Daniel P. McMurrer and published by The Urban Insitute. This book was released on 1998 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: Adapted in part from the "Opportunity in America" series of policy briefs, this volume focuses on social and economic mobility in the United States. Class or family background has a strong effect on individual success, the authors find. They examine the possible reasons for this relationship; how it has changed over the past century; and the role of the economy, the welfare system, and education in opening up opportunities for the less fortunate.
Download or read book Mobility Taxation and Welfare written by Sami Bibi and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of mobility by assuming both a social aversion to inequality in permanent incomes and an individual aversion to variability in periodic incomes. The paper further investigates the combined (and comparative) impact of mobility and of the tax system (another presumed income equalizer) on the dynamics of income across time and on the inequality of income across individuals. Using panel data, we find that Canada's tax system limits significantly the redistributive impact of mobility while also lowering considerably the cost of income variability. The permanent income equalizing effect of taxes can reach up to 23 percent of mean income at the higher values of inequality aversion that we use. Globally, the net social welfare effect of both mobility and taxation is (almost always) positive and substantial, often amounting to around 30 percent of mean income. For all choices of parameter values, the tax effect exceeds by far the net effect of mobility on inequality and social welfare. -- mobility ; social welfare ; risk ; income variability ; inequality ; permanent income
Download or read book Income Mobility Inequality and Social Welfare written by John Creedy and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is often argued that an observation of rising annual income inequality need not have negative normative implications. The argument is that if there has been a sufficiently large simultaneous increase in mobility, the inequality of income measured over a longer time period can be lower despite the rise in annual inequality. In this paper, it is shown by example that if normative implications are drawn from a standard social welfare function, the set of circumstances put forward in the above argument are not sufficient to guarantee that social welfare will improve. The reason is that even though rising mobility does reduce longer term inequality, it also increases the variability of income profiles over time and the latter has a detrimental social welfare effect. Hence, there are two types of mobility: one which reduces inequality (regression to the mean), but another that increases inequality (relative movements uncorrelated with incomes). Further, if individuals' aversion to income variabiltiy is sufficiently larger than the social welfare judge's aversion to inequality, then an increase in mobility, no matter how large, cannot offset the negative normative effect of rising annual inequality.
Download or read book The Distribution of Welfare and Household Production written by Stephen P. Jenkins and published by Cambridge University Press. This book was released on 1998-04-16 with total page 450 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book uses a range of approaches to measure living standards and economic welfare.
Download or read book Inequality Welfare and Income Distribution written by F.A. Cowell and published by Elsevier. This book was released on 2004-07 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Covers a range of topics in the field of income distribution and extends the approach to related issues such as mobility and attitudes to risk. This selection of papers includes both participatory experiments and questionnaire experiments.
Download or read book Mobility Taxation and Welfare written by Sami Bibi and published by . This book was released on 2013 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Income mobility is often thought to equalize permanent incomes and, thereby, to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of mobility by assuming both an aversion to inequality in permanent incomes and an aversion to variability in periodic incomes. The paper further investigates the combined (and comparative) impact of mobility and the tax system (another presumed income equalizer) on the dynamics of income across time and on the inequality of income across individuals. Using panel data, we find that Canada's tax system limits significantly the redistributive impact of mobility, while also lowering considerably the cost of income variability. The permanent income equalizing effect of taxes can reach up to 23 percent of mean income at the higher values of inequality aversion that we use. Globally, the net social welfare effect of both mobility and taxation is (almost always) positive and substantial, often amounting to around 30 percent of mean income. For all choices of parameter values, the tax effect exceeds substantially the net effect of mobility on inequality and social welfare.
Download or read book Inequality of Opportunity written by Juan Gabriel Rodríguez and published by Emerald Group Publishing. This book was released on 2011-10-12 with total page 259 pages. Available in PDF, EPUB and Kindle. Book excerpt: Eight papers, both theoretical and applied, on the concept of equality of opportunity which says that a society should guarantee its members equal access to advantage regardless of their circumstances, while holding them responsible for turning that access into actual advantage by the application of effort.
Download or read book Communities in Action written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2017-04-27 with total page 583 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the United States, some populations suffer from far greater disparities in health than others. Those disparities are caused not only by fundamental differences in health status across segments of the population, but also because of inequities in factors that impact health status, so-called determinants of health. Only part of an individual's health status depends on his or her behavior and choice; community-wide problems like poverty, unemployment, poor education, inadequate housing, poor public transportation, interpersonal violence, and decaying neighborhoods also contribute to health inequities, as well as the historic and ongoing interplay of structures, policies, and norms that shape lives. When these factors are not optimal in a community, it does not mean they are intractable: such inequities can be mitigated by social policies that can shape health in powerful ways. Communities in Action: Pathways to Health Equity seeks to delineate the causes of and the solutions to health inequities in the United States. This report focuses on what communities can do to promote health equity, what actions are needed by the many and varied stakeholders that are part of communities or support them, as well as the root causes and structural barriers that need to be overcome.
Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
Download or read book The Rate and Direction of Inventive Activity written by National Bureau of Economic Research and published by Princeton University Press. This book was released on 2015-12-08 with total page 647 pages. Available in PDF, EPUB and Kindle. Book excerpt: The papers here range from description and analysis of how our political economy allocates its inventive effort, to studies of the decision making process in specific industrial laboratories. Originally published in 1962. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.
Download or read book The Truly Disadvantaged written by William Julius Wilson and published by University of Chicago Press. This book was released on 2012-06-29 with total page 331 pages. Available in PDF, EPUB and Kindle. Book excerpt: An assessment of the relationship between race and poverty in the United States, and potential solutions for the issue. Renowned American sociologist William Julius Wilson takes a look at the social transformation of inner-city ghettos, offering a sharp evaluation of the convergence of race and poverty. Rejecting both conservative and liberal interpretations of life in the inner city, Wilson offers essential information and several solutions to policymakers. The Truly Disadvantaged is a wide-ranging examination, looking at the relationship between race, employment, and education from the 1950s onwards, with surprising and provocative findings. This second edition also includes a new afterword from Wilson himself that brings the book up to date and offers fresh insight into its findings. Praise for The Truly Disadvantaged “The Truly Disadvantaged should spur critical thinking in many quarters about the causes and possible remedies for inner city poverty. As policymakers grapple with the problems of an enlarged underclass they—as well as community leaders and all concerned Americans of all races—would be advised to examine Mr. Wilson’s incisive analysis.” —Robert Greenstein, New York Times Book Review “The Truly Disadvantaged not only assembles a vast array of data gleamed from the works of specialists, it offers much new information and analysis. Wilson has asked the hard questions, he has done his homework, and he has dared to speak unpopular truths.” —Los Angeles Times Book Review “Required reading for anyone, presidential candidate or private citizen, who really wants to address the growing plight of the black urban underclass.” —David J. Garrow, Washington Post Book World
Download or read book Changing Fortunes written by Stephen P. Jenkins and published by OUP Oxford. This book was released on 2011-07-28 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most information about the incomes of people in Britain today, such as provided by official statistics, tells us how much inequality there is or how many poor people there are in a given year and compares those numbers with the corresponding statistics from the previous year. Missing from snapshot pictures like these is information about whether the people who were poor one year are the same people who are poor the following year; and the circumstances of those with middle-income or top-income origins are not tracked over time. This book fills in the missing information. The author likens Britain's income distribution to a multi-story apartment building with the numbers of residents on the different floors corresponding to the concentration of people at different income levels in any particular year. The poorest are in the basement, the richest are in the penthouse, and the majority somewhere in between. This book assesses how much movement there is between floors, the frequency of moves, whether the distance travelled has been changing over the last two decades, and whether basement dwellers ever reach the penthouse. Using the British Household Panel Survey, which has followed and interviewed the same people annually since 1991, it documents the patterns of income mobility and poverty dynamics in Britain, shows how they have changed over the last two decades, and explores the reasons why. It draws attention to the relationships between changes in income and changes in other aspects of people's lives - not only in their jobs, earnings, benefits, and credits, but also in the households within which they live (people marry and divorce; children are born). Trends over time are also related to changes in Britain's labour market and the reforms to the tax-benefit system introduced by the Labour government in the late-1990s.
Download or read book The Oxford Handbook of the Social Science of Poverty written by David Brady and published by Oxford University Press. This book was released on 2016 with total page 937 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Oxford Handbook of the Social Science of Poverty builds a common scholarly ground in the study of poverty by bringing together an international, inter-disciplinary group of scholars to provide their perspectives on the issue. Contributors engage in discussions about the leading theories and conceptual debates regarding poverty, the most salient topics in poverty research, and the far-reaching consequences of poverty on the individual and societal level.
