ABSTRACT
Income inequality and economic mobility are two distinct concepts, with income inequality denoting the distribution of income at a given point in time and economic mobility describing the ability of families to move up and down through the income distribution. Studies of economic mobility can focus on movements in the distribution of earnings, family incomes, pre- or post-tax and transfer incomes and earnings, and incomes adjusted for family size. Economic mobility can be measured either relative to one's peer group or against an absolute standard. Measuring absolute mobility captures the effects of economic growth, but it does not indicate whether one's position in society has changed. Given all the factors that can influence assessments of mobility, it is remarkable how consistent the research findings have been over the past three decades. Unlike the case for relative mobility, there are a few statistically significant differences in absolute mobility in the middle and top of the income distribution.
