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Income Mobility in Costa Rica, 2001-2007

Author

Listed:
  • Rowe, Samuel
  • Gindling, T.H.
  • Trejos, Juan Diego

Abstract

In this paper we study year-to-year intra-generational income mobility in Costa Rica. To do so we use a panel data set constructed from the Household Surveys for Multiple Purposes (2001-2007) that allows us to follow the same households and persons from year-to-year. We find that there is substantial year-to-year income mobility in Costa Rica, especially in the middle of the income distribution. We also identify the factors that most affect year-to-year income mobility in Costa Rica. We find that per capita income is conditionally convergent; low-income families are more likely to experience an increase in income than are high-income families. Aside from initial per capita income, the three most important factors that explain changes in per capita household income in Costa Rica are, in order of importance: (1) changes in the employment status of household members; (2) changes in the number of dependents (children, elderly and other non-working members) in the household; and (3) the education of household members, especially the household head.

Suggested Citation

  • Rowe, Samuel & Gindling, T.H. & Trejos, Juan Diego, 2014. "Income Mobility in Costa Rica, 2001-2007," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 32(1), December.
    • Handle: RePEc:rce:rvceco:15050
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    File URL: https://revistas.ucr.ac.cr/index.php/economicas/article/view/15050
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