Bibi, Sami; Duclos, Jean-Yves; Araar, Abdelkrim - 2011
Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare … analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent … incomes. This paper assesses the net welfare benefit of mobility by assuming both a social aversion to inequality in permanent …