But when the assumption that measures of intragenerational mobility are invariant over the time period measured is dropped and tested using moving 5-year windows that allow us to measure mobility before and after reunification for this population, we find evidence that a great social transformation, in this case German reunification, is coincident with a significant decline in their income mobility.
In addition to the Shorrocks R, we examine trends in intragenerational mobility using decomposition methods developed by Gottschalk and Moffitt (1994).
Keywords: economic mobility, intragenerational mobility, inequality, income distribution, public policy
Relative intragenerational mobility is concerned with the ease with which workers are able to move into higher income brackets relative to their income peer group and specific to only one generation of workers.
Therefore, in terms of influencing worker motivation, trends in intergenerational mobility probably matter less than do trends in intragenerational mobility.
A Cross-Period Analysis of Relative Intragenerational Mobility Trends
The best way to measure relative intragenerational mobility is to observe trends in panel data.
Our goal is to examine how each income group's share of the total income earned by all income groups changed through time, and then to compare those changes across periods in an effort to reveal trends in relative intragenerational mobility [Fields 2006].
Figure 5 shows that relative intragenerational mobility was higher in the 1988 to 1999 period relative to what was the case in the 1968 to 1979 period.
Figure 6 shows that relative intragenerational mobility declined in the 1999-2009 period relative to what was the case in the 1972-1982 period.
In the case of intergenerational mobility, the focus of analysis is on mobility between the past and the present generations, but in the case of intragenerational mobility
it is the mobility within one and the same generation that constitutes the object of study.