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Using Pseudo-Panels to Measure Income Mobility in Latin America

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Author Info

  • Cuesta, Jose

    ()
    (Inter-American Development Bank)

  • Nopo, Hugo

    ()
    (Inter-American Development Bank)

  • Pizzolitto, Georgina

    ()
    (World Bank)

Abstract

This 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 education of the household head, the latter subject to distinctive effects across levels of attainment and transition in and out of poverty.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5449.

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Length: 40 pages
Date of creation: Jan 2011
Date of revision:
Publication status: published in: Review of Income and Wealth, 2011, 57 (2), 224-246
Handle: RePEc:iza:izadps:dp5449

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Keywords: Latin America; poverty; income mobility; pseudo-panels;

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References

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Using Pseudo-Panels to Measure Income Mobility in Latin America
    by maximorossi in NEP-LTV blog on 2011-02-07 17:08:07
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Cited by:
  1. Krebs, Tom & Krishna, Pravin & Maloney, William F., 2013. "Income Mobility and Welfare," Working Papers 13-02, University of Mannheim, Department of Economics.
  2. Krebs, Tom & Krishna, Pravin & Maloney, William F., 2012. "Income Risk, Income Mobility and Welfare," IZA Discussion Papers 7056, Institute for the Study of Labor (IZA).
  3. Eduardo Lora & Francesca Castellani, 2014. "Entrepreneurship in Latin America : A Step Up the Social Ladder?," World Bank Publications, The World Bank, number 16347, October.
  4. Allen M. Featherstone & Timothy A. Park & Jeremy G. Weber, 2012. "Keeping ARMS relevant: extracting additional information from ARMS," Agricultural Finance Review, Emerald Group Publishing, vol. 72(2), pages 233-246, July.
  5. Jeffrey T. Prince & Shane Greenstein, 2011. "Does Service Bundling Reduce Churn?," Working Papers 2011-05, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  6. Cuesta, Jose & Bohorquez, Camilo, 2011. "Labor market transitions and social security in Colombia," Policy Research Working Paper Series 5650, The World Bank.
  7. Ebru Çaglayan & Naime Irem Kosan & Melek Astar, 2012. "An Empirical Analysis of the Determinants of Household Poverty in Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(1), pages 181-191, March.
  8. Jeffrey T. Prince & Shane Greenstein, 2013. "Measuring Consumer Preferences for Video Content Provision via Cord-Cutting Behavior," Working Papers 2013-09, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  9. Xavier Ordeñana & Ramon Villa, 2012. "Mobility and Entrepreneurship in Ecuador: A Pseudo-Panel Approach," Research Department Publications 4783, Inter-American Development Bank, Research Department.
  10. Guillermo Cruces & Marcelo Bérgolo & Andriana Conconi & Andrés Ham, 2012. "Are there Etchnic Inequality Traps in Education ? Empirical Evidence for Brazil and Chile," Working Papers PMMA 2012-05, PEP-PMMA.

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