Income mobility in the Slovak Republic

The following income transition matrix was published by the Slovak Fiscal Council:

Based on the administrative data, here are some facts about income mobility in Slovakia:

  • 70.3% of the top 1% earners stayed in the same income category between 2012 and 2013.
  • 1.6% of employees who were in the bottom decile in 2012 made it into the top quintile.
  • The probability of moving to the top decile is very similar for all except the top two deciles. Someone in the seventh decile had a slightly lower probability of reaching the top decile than someone in the bottom decile.
  • People in the fifth (middle) decile were the most mobile.
  • Only 1% of the employees in the top decile (in 2012) fell into one of the four bottom deciles.

Of course, an even more informative matrix would tell us something about longer horizons.

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