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Testing for Mobility Dominance

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  • Yélé Maweki Batana
  • Jean-Yves Duclos

Abstract

This paper proposes tests for stochastic dominance in mobility based on the empirical likelihood ratio. Two views of mobility are considered, either based on measures of absolute mobility or on transition matrices. First-order and second-order dominance conditions in mobility are first derived, followed by the derivation of statistical inferences techniques to test a null hypothesis of non dominance against an alternative of mobility dominance. An empirical analysis, based on the US Panel Study of Income Dynamics (PSID), is performed by comparing four income mobility periods ranging from 1970 to 1990.

Suggested Citation

  • Yélé Maweki Batana & Jean-Yves Duclos, 2010. "Testing for Mobility Dominance," Cahiers de recherche 1002, CIRPEE.
    • Handle: RePEc:lvl:lacicr:1002
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    References listed on IDEAS

    as
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    4. Yélé Maweki Batana & Jean-Yves Duclos, 2008. "Multidimensional Poverty Dominance: Statistical Inference and an Application to West Africa," Cahiers de recherche 0808, CIRPEE.
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    Cited by:

    1. Higgins, Sean & Lustig, Nora, 2016. "Can a poverty-reducing and progressive tax and transfer system hurt the poor?," Journal of Development Economics, Elsevier, vol. 122(C), pages 63-75.
    2. Sean Higgins & Nora Lustig, 2015. "Can Poverty-Reducing and Progressive Tax and Transfer System Hurt the Poor?," Commitment to Equity (CEQ) Working Paper Series 1333, Tulane University, Department of Economics.

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    More about this item

    Keywords

    Mobility; Stochastic dominance; Transition matrices; Empirical Likelihood ratio; Bootstrap tests;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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