The effects of disasters on income mobility: Bootstrap inference and measurement error simulations
AbstractWe evaluate the impact of disasters on income mobility by drawing on "natural experiments". While the poor have a much higher probability of remaining poor when entering a crisis compared to normal times, there is also a negative effect in the year after. Richer households seem to be unaffected. A simple bootstrap method is proposed to facilitate statistical inference for mobility matrices. Also, we simulate measurement error to illustrate its magnitude on these matrices. Small errors induce a substantial downward bias of the probability of remaining poor, while comp arisons across states seem more robust, which is promising for impact analysis.
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Bibliographic InfoPaper provided by CMI (Chr. Michelsen Institute), Bergen, Norway in its series CMI Working Papers with number WP 2003:6.
Length: 40 pages
Date of creation: 2003
Date of revision:
Income mobility Effects of disasters Bootstrap Measurement error Simulations Natural experiments Control group Treatment group Poverty;
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