Income Mobility of Owners of Small Businesses when Boundaries between Occupations are Vague

Figure 2. Inequality of wage earners and self-employed 1993-2003, individual data and
household data

Gini coefficient
0,6

^{- -} ■ Inequality among ow ners of small businesses, narrow definition

Inequality among ow ners of small businesses, w ide definition
0,5

Inequality among w age earners

^0,4 . ~ -

0,3

0,1

0,0
1993   1994   1995   1996   1997   1998   1999   2000   2001   2002   2003

Gini coefficient

0,5

Households w here main income earner is self-employed

Households w here main income earner is w age earner

3.3 The link between business ownership and mobility. Evidence from the
transition matrices

A transition matrix forms the natural starting point for studies of income mobility. In this section
mobility evidence from transition matrices will be discussed, whereas the next section will look at the
relationship between occupations (on varying definitions) and income mobility in terms of a dynamic
process.

10

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