Abstract

In this paper we develop a coherent framework that integrates both traditional measures of b-convergence and s-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income mobility and studies analysing the progressivity of the tax system. We also develop a welfare interpretation for the concept of b-convergence, which distinguishes it from the more general form of s-convergence and which also suggests that the b-process may be worthy of independent study. We illustrate our approach using data for the period 1960-200