Bayaz-Ozturk, Gulgun.
Consolidating the Evidence on Income Mobility in the Western States of Germany and the U.S. from 1984-2006 /
Gulgun Bayaz-Ozturk, Richard V. Burkhauser, Kenneth A. Couch.
- Cambridge, Mass. National Bureau of Economic Research 2012.
- 1 online resource: illustrations (black and white);
- NBER working paper series no. w18618 .
- Working Paper Series (National Bureau of Economic Research) no. w18618. .
December 2012.
The cross-national intragenerational income mobility literature assumes within-country mobility is invariant over the period measured. We argue that a great social transformation--German reunification-- abruptly and permanently altered economic mobility. Using standard measures of mobility (with panel data for the western states of Germany and the U.S.) over the entire period 1984-2006, we find the conventional result that income mobility is greater in Germany. But when we cut the data into moving five-year windows and compare mobility before and after reunification, income mobility declines significantly over the years immediately following reunification in Germany but not in the U.S.
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