Economics Welfare Economics Questions
Income mobility refers to the ability of individuals or households to move up or down the income ladder over time. It measures the extent to which individuals can improve their economic status or experience a decline in their income level. Income mobility is an important aspect of welfare economics as it reflects the opportunities for upward social and economic mobility within a society. It is influenced by various factors such as education, skills, job opportunities, social mobility, and economic policies. A high level of income mobility indicates a more equitable distribution of income and greater economic opportunities for individuals, while low income mobility suggests limited opportunities for individuals to improve their economic well-being.