I would define absolute income mobility in terms of some globally comparable good. Dollars, PPP adjusted or not, for example.
Relative mobility to me means mobility within some particular income distribution: Moving from, say, an average household income in the first quintile to an average household income in the fifth quintile.
I prefer absolute mobility as a measure of economic mobility for the same reason that any rational actor would prefer to win a lottery for the difference between the income of an average bottom 20% household and an average top 20% household in the U.S.[1] vs. Sweden[2]. According to OECD, that's $75K vs. $37K.
Comments
We should probably define terms first.
Which definitions of absolute and relative are you using? (There are a few, and they're not identical.)
I would define absolute income mobility in terms of some globally comparable good. Dollars, PPP adjusted or not, for example.
Relative mobility to me means mobility within some particular income distribution: Moving from, say, an average household income in the first quintile to an average household income in the fifth quintile.
I prefer absolute mobility as a measure of economic mobility for the same reason that any rational actor would prefer to win a lottery for the difference between the income of an average bottom 20% household and an average top 20% household in the U.S.[1] vs. Sweden[2]. According to OECD, that's $75K vs. $37K.
[1] http://www.oecdbetterlifeindex.org/countries/united-states/
[2] http://www.oecdbetterlifeindex.org/countries/sweden/
Do you have a citation or not?