Income Mobility and Mixing in North Macedonia

TL;DR

This paper analyzes income mobility in North Macedonia from 1995 to 2021, revealing historical trends and challenges in upward income movement using novel mobility metrics.

Contribution

It provides the first comprehensive analysis of income mobility in North Macedonia employing Mixing Time and MFPT metrics over a 26-year period.

Findings

Higher mobility in the 1990s with decreasing trend until 1999

Stable mixing time around 4 years post-1999

MFPT shows fluctuating challenges in upward income mobility

Abstract

This study presents the inaugural analysis of income mobility in North Macedonia from 1995-2021 using the Mixing Time and Mean First Passage Time (MFPT) metrics. We document larger mobility (in terms of Mixing Time) during the '90s, with and decreasing trend (in terms of mobility) until 1999. After this year the Mixing time has been consistent with a value of around 4 years. Using the MFPT, we highlight the evolving challenges individuals face when aspiring to higher income tiers. Namely, we show that there was a noticeable upward trend in MFPT from 1995 to 2006, a subsequent decline until 2017, and then an ascent again, peaking in 2021. These findings provide a foundational perspective on the income mobility in North Macedonia.