Resumen de Income mobility and economic inequality from a regional perspective

Juan Prieto Rodríguez , Juan Gabriel Rodríguez Hernández, Rafael Salas del Mármol

• Political redistributive models state that the higher the social mobility, the lower the demand for redistribution and, therefore, the higher the ex-post inequality. The objective of this study is to establish empirically if there is a significant positive relationship between social mobility and income inequality at regional level. The indices are calculated for the set of EU regions, using the European Community Household Panel survey. Additionally, total mobility is decomposed into three terms: growth, dispersion and exchange. By estimating a random coefficients model, it is shown that a positive relationship at the regional level exists.