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Labor mobility, job preferences, and income distribution.

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Article

Montenegro, Alvaro

Labour. Review of Labour Economics and Industrial Relations

2003

17

1

March

93-102

income distribution ; labour mobility

Labour market

English

Bibliogr.

"A model is presented to illustrate the role of labor mobility in income distribution. Worker preference for different occupations and wage comparisons are combined to determine the allocation of labor between sectors and to trace the behavior of the Gini coefficient as mobility increases. The Gini coefficient fails to fall monotonically with increasing labor mobility, making its interpretation ambiguous. It is also shown that the Gini coefficient has a lower nonzero limit, a fact compatible with empirical findings."

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