TY - UNPB

T1 - The sampling distribution of Directional Mobility Indices applied to the income of Italian families

AU - Ferretti, Camilla

PY - 2014

Y1 - 2014

N2 - In economics, transition matrices are often used to describe the dynamics of
individuals among a discrete set of states, defined on the basis of an economically
relevant variable. Typical examples are the analysis of flows of workers in the labor
market or of householders among various income levels. We consider here the
problem of comparing different matrices through a specific mobility index called
directional index. Generally speaking, mobility indices are functions of a given
transition matrix P. The directional index is a particular function able to indicate
both the level of mobility and the prevailing direction (left/right) in the dynamics
under study. Here we focus on the comparison between two different sampling
matrices: consequently, in order to rigorously determine if the level of mobility
has significantly changed, we provide the analysis of its asymptotic sampling distribution.
Empirical applications regard the analysis of sampling transition matrices about
the income of Italian families. Such matrices cover four consecutive two-years periods,
from 2004 to 2012. We make statistical inference to analyze changes of
mobility with respect of time, and among families with different income levels.
Starting from 2006, results show a prevailing negative mobility, that is the tendency
of Italian families to move towards lower income classes. In particular, we
observe negative peaks in the mobility values in the period 2010-2012, for middle/
high income classes, indicating that Italian families are still suffering the 2008
downturn.

AB - In economics, transition matrices are often used to describe the dynamics of
individuals among a discrete set of states, defined on the basis of an economically
relevant variable. Typical examples are the analysis of flows of workers in the labor
market or of householders among various income levels. We consider here the
problem of comparing different matrices through a specific mobility index called
directional index. Generally speaking, mobility indices are functions of a given
transition matrix P. The directional index is a particular function able to indicate
both the level of mobility and the prevailing direction (left/right) in the dynamics
under study. Here we focus on the comparison between two different sampling
matrices: consequently, in order to rigorously determine if the level of mobility
has significantly changed, we provide the analysis of its asymptotic sampling distribution.
Empirical applications regard the analysis of sampling transition matrices about
the income of Italian families. Such matrices cover four consecutive two-years periods,
from 2004 to 2012. We make statistical inference to analyze changes of
mobility with respect of time, and among families with different income levels.
Starting from 2006, results show a prevailing negative mobility, that is the tendency
of Italian families to move towards lower income classes. In particular, we
observe negative peaks in the mobility values in the period 2010-2012, for middle/
high income classes, indicating that Italian families are still suffering the 2008
downturn.

KW - directional mobility index, income transition matrix

KW - directional mobility index, income transition matrix

UR - http://hdl.handle.net/10807/61989

M3 - Working paper

BT - The sampling distribution of Directional Mobility Indices applied to the income of Italian families

PB - ISU - Università Cattolica del Sacro Cuore

ER -