INEQUALITY AND PANEL INCOME CHANGES: CONDITIONS FOR POSSIBILITIES AND IMPOSSIBILITIES
研究了总体不平等变化与个体面板收入变化之间的关系,发现特定条件下两者不可能同时出现下降或上升,并解释了直觉和失效情况。
Abstract Income changes in an economy are usually assessed through the changes over time in cross‐sectional variables such as economy‐wide inequality. An alternative is to use panel data to gauge income changes among identified income recipients. In this article, we analyze these two approaches taken together , each measured in multiple ways. We establish that under specific conditions, it is impossible to have falling inequality together with divergent panel income changes. We also provide conditions explaining when rising inequality can arise together with convergent panel changes. We provide the intuition behind these results and show when such results fail to hold.