The distinguishing feature of our panel is the construction of annual inequality
measures for each of the states.
A new state-level panel of annual inequality
measures over the period 1916-2005.
Mobility, however, had a disequalizing effect and, in fact, outweighed the progressivity effect, thus increasing the annual inequality
The above annual inequality
measures are estimated using consumer income data from the Current Population Report for the U.
The preceding example of a two-person economy demonstrates how, with annual inequality
staying constant, movement in the earnings distribution can still work to reduce inequality when earnings are summed over a longer period.
And most important, since most individuals plan to stay with their current employers and earn generous pensions in the future,(20) a measure of annual inequality
does not capture individuals' personal expectations of future benefits, or does not measure the true distribution of welfare.