Income mobility refers to the ability of individuals to move up or down the income ladder over time. In the United States, there is significant income mobility, meaning that an individual's income in one year may not be a good predictor of their income in another year. This makes lifetime income inequality among income receivers in the United States less than income inequality in any single year.

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Income Mobility

Question 36

Multiple Choice

Income mobility

A) makes lifetime income inequality among income receivers in the United States less than income inequality in any single year.
B) is less in the United States than in most developing nations.
C) refers to the movement of wage earners from one job to another.
D) reduces the total percentage of households in the lowest quintile of the income distribution over time.

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