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Camel or dromedary? A study of the equilibrium distribution of income in the EU countries.

Last modified: 2018-05-12

#### Abstract

We face here the problem of analysing the presence of bimodality of the equilibrium distribution of incomes in the EU countries, using EU-SILC data about 2012-2015. As a first step we visually inspect the kernel distribution and calculate the Sarleâ€™s bimodality coefficient. We evaluate also the relationship between bimodality and inequality. As a second step we propose to use some suitable stochastic models to analyse the shape (camel/dromedary) of the estimated the long-run income distribution. The chosen models are the classical Markov Chain and the Mover Stayer model.

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