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Gorkhmaz Imanov, Asif Aliyev : Fuzzy Linguistic Forecasting of Social Mobility

Table 5. Social mobility and its components
Components of mobility Structural mobility
Social strata

1.Very poor 0 0.40 -0.40 0
2. Poor 0.06 1.38 1.58 2.96
3. Low satisfied 0.39 3.17 2.51 5.67
4. Moderate satisfied 0.10 0.15 1.60 1.75
5. High satisfied 0.03 0.14 1.60 1.74

The estimation results in all cases show that, mobility indices for Low satisfied
group were high, which indicates very responsive mobility. Then comes indices for
Moderate satisfied and Poor groups respectively. High satisfied group showed the
least mobility when very poor group was completely immobile.

One possible explanation of the results is that the increase of social mobility is
accompanied by changes in the social status of people, thus reducing inequality in
society. That is, if a citizen earns less than the average monthly income in the
economy today, he can earn more tomorrow. If social mobility is high enough,
concerns about the uneven distribution of income in the society can be diminished,
resulting in unnecessity for redistribution of income at the societal level. Reducing
the need for redistribution of income can ultimately lead to income inequality.

Obviously only governments can undertake income redistribution programs. Some
governments carry out this program with toughness, some do it in a relaxed pace.
Addressing income inequality is not a real answer. Just the wealth gap must be
addressed which is the cause of the income gap. If the wealth base kept unchanged
any reduction in income gap will be ineffective. On top of that, governments’ cash-
transfer programs are usually charity programs. Charity programs are excellent as
temporary relief, they cannot give permanent solution to the problem. Rather they
hide problem. Central point of the proposal to redesign the economic framework is
to move from personal interest driven economics to both personal and collective
interest driven economics. There are some crucial ways to fight income inequality.
First one is creating social business, defined as a non-dividend company to solve
human problems such as, housing for the poor, health care, renewable energy,
nutrition, water, nursing college, and many more. Then comes technological
development. The combined power of the youth, technology, and social business can

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