The study of Figueiredo e Ziegelmann (2007) showed that in Brazil there was a gain in welfare related to increasing of income mobility. However, this results did not consider one of the side effects related to this phenomenon: the increase of uncertainty associated to the behavior of consumption. According to this approach, this study questions how desirable is the income mobility in Brazil. It was used an index that separates the negative and positive effects related to mobility. The results showed, considering a coefficient of risk aversion, that an increase of income mobility will have positive effects only if the inequality parameter is superior to 2.95.
Income mobility; Desirability; Economic welfare
