Non-anonymous growth incidence curves, income mobility and social welfare dominance

François Bourguignon

Research output: Contribution to journalArticlepeer-review

Abstract

The distributional incidence of growth is generally analyzed by comparing the quantiles of the pre- and post-growth income distribution-e. g. the so-called Growth Incidence Curves. Such an approach based on an implicit re-ranking of individual incomes ignores income mobility by assuming that only post-growth income matters in social welfare. By contrast, this paper takes the view that "status quo matters" and that social welfare should logically be defined on both inital and terminal income. This leads to consider 'non-anonymous' Growth Incidence Curves that plot income growth rates against the various quantiles of the initial distribution. Dominance criteria that generalize those available for standard growth incidence curves are derived, which account for the inequality of individual income changes, conditional on initial income. An application to the cross-country distributional feature of global growth illustrates the analysis.

Original languageEnglish (US)
Pages (from-to)605-627
Number of pages23
JournalJournal of Economic Inequality
Volume9
Issue number4
DOIs
StatePublished - Dec 2011

Keywords

  • Dominance
  • Growth
  • Income mobility
  • Inequality
  • Pro-poor

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics, Econometrics and Finance(all)
  • Organizational Behavior and Human Resource Management

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