Income mobility allows individuals to move between different income levels over their lifetime, reducing lifetime income inequality compared to a snapshot of income inequality at a single point in time.

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Income Mobility

Question 4

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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