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On the Magnitude of Income Mobility in Germany

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Van Kerm, P. On the Magnitude of Income Mobility in Germany. Journal of Contextual Economics – Schmollers Jahrbuch, 123(1), 15-25. https://doi.org/10.3790/schm.123.1.15
Van Kerm, Philippe "On the Magnitude of Income Mobility in Germany" Journal of Contextual Economics – Schmollers Jahrbuch 123.1, 2003, 15-25. https://doi.org/10.3790/schm.123.1.15
Van Kerm, Philippe (2003): On the Magnitude of Income Mobility in Germany, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 123, iss. 1, 15-25, [online] https://doi.org/10.3790/schm.123.1.15

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On the Magnitude of Income Mobility in Germany

Van Kerm, Philippe

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 123 (2003), Iss. 1 : pp. 15–25

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Van Kerm, Philippe

Abstract

This paper documents the magnitude of income mobility in Germany and its distribution across different income positions, using data from the German Socio-Economic Panel. The suggested graphical approach makes it straightforward to identify the portions of the distribution that have the largest impact on aggregate ‘income movement’ indices a` la Fields & Ok, and hence offers a starting point to help account for income mobility levels. It appears that most of the contribution to mobility is made by the poorest 10% of the initial distribution. Average relative income changes are much lower and generally constant for the rest of the population.