Measuring intra-distribution income dynamics: an application to the European regions

This paper addresses the issue of intra-distribution income dynamics at the European regional level for the periods 1980-1993 and 1993-2005. In order to assess whether the results depend on the estimation method, the paper applies and compares two relatively novel techniques: the highest conditional density region approach and a new mobility measure based on a discrete-time Markov chain approach. An interesting conclusion and a methodological lesson have been obtained. The conclusion is that, whatever the technique used, the degree of intra-distribution mobility-which has favoured convergence-has been much higher in the first than in the second period. The lesson is that the use of different approaches is highly recommended not only for the sake of robustness but also because they offer additional insights into intra-distribution dynamics.