Using Pseudo-Panels to Measure Income Mobility in Latin America
AbstractThis paper presents a comparative overview of mobility patterns in 14 Latin American countries between 1992 and 2003. Using three alternative econometric techniques on constructed pseudo-panels, the paper provides a set of estimators for the traditional notion of income mobility as well as for mobility around extreme and moderate poverty lines. The estimates suggest very high levels of time-dependent unconditional immobility for the Region. However, the introduction of socioeconomic and personal factors reduces the estimate of income immobility by around 30 percent. There are also large variations in country-specific income mobility (estimated to explain some additional 10 percent of inter-temporal income variation). Analyzing the determinants of changes in poverty incidence within cohorts revealed statistically significant roles for age, gender and, to a lesser degree, education of the household head and dwelling characteristics.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4557.
Date of creation: Nov 2007
Date of revision:
Other versions of this item:
- Jose Cuesta & Hugo Ñopo & Georgina Pizzolitto, 2011. "Using Pseudo‐Panels To Measure Income Mobility In Latin America," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(2), pages 224-246, 06.
- Cuesta, Jose & Nopo, Hugo & Pizzolitto, Georgina, 2011. "Using Pseudo-Panels to Measure Income Mobility in Latin America," IZA Discussion Papers 5449, Institute for the Study of Labor (IZA).
- D3 - Microeconomics - - Distribution
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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