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Title: Measuring Upward Mobility
We conceptualize and measure upward mobility over income or wealth. At the core of our exercise is the Growth Progressivity Axiom: transfers of instantaneous growth rates from relatively rich to poor individuals increases upward mobility. This axiom, along with mild auxiliary restrictions, identifies an “upward mobility kernel” with a single free parameter, in which mobility is linear in individual growth rates, with geometrically declining weights on baseline incomes. We extend this kernel to trajectories over intervals. The analysis delivers an upward mobility index that does not rely on panel data. That significantly expands our analytical scope to data-poor settings. (JEL D31, D63, I32, O15, O40)  more » « less
Award ID(s):
1851758 2315720
NSF-PAR ID:
10503303
Author(s) / Creator(s):
;
Publisher / Repository:
American Economic Association
Date Published:
Journal Name:
American Economic Review
Volume:
113
Issue:
11
ISSN:
0002-8282
Page Range / eLocation ID:
3044-3089
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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