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Comparing Economic Mobility with Heterogeneity Indices: an Application to Education in Peru

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  • Gaston Yalonetzky

Abstract

The long literature on intergenerational transmission of well-being has largerly been driven by concerns for inequality of opportunity and the persistence of low levels of wellbeing among certain social groups.A comparative strand of this literature seeks to compare indicators of these transmission mechanisms, i.e. mobility regimes, across societies, regions or time. In this paper I contribute to this literature by suggesting an additional way of comparing mobility regimes with indices of heterogeneity across distributions based on a traditional homogeneity test of multinomial distributions, which is helpful to compare discrete-time transition matrices. The indices measure the degree of dissimilarity between two or more transition matrices controlling for population size and the dimensions of the matrix. The indices provide a good alternative to between-group comparisons based on linear parametric models (chiefly OLS) in which either slope coefficients are compared directly or group dummy variables are interacted with parameters from the models. They also provide complementary information to comparisons based on summary indicators of transition matrices. An application to educational mobility in Peru shows that the transition matrices of males and females are more similar among the youngest cohorts of adults.

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Bibliographic Info

Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp033.

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Date of creation: Dec 2009
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Handle: RePEc:qeh:ophiwp:ophiwp033

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  1. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  2. Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-97, October.
  3. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, October.
  4. Formby, John P. & Smith, W. James & Zheng, Buhong, 2004. "Mobility measurement, transition matrices and statistical inference," Journal of Econometrics, Elsevier, vol. 120(1), pages 181-205, May.
  5. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  6. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Intergenerational Mobility in Latin America," IDB Publications 6485, Inter-American Development Bank.
  7. Bourguignon, François & Ferreira, Francisco & Menéndez, Marta, 2007. "Inequality of Opportunity in Brazil," Economics Papers from University Paris Dauphine 123456789/1552, Paris Dauphine University.
  8. Van de Gaer, Dirk & Schokkaert, Erik & Martinez, Michel, 2001. "Three Meanings of Intergenerational Mobility," Economica, London School of Economics and Political Science, vol. 68(272), pages 519-37, November.
  9. James Foster & Luis Lopez-Calva & Miguel Szekely, 2005. "Measuring the Distribution of Human Development: methodology and an application to Mexico," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 5-25.
  10. Mark Trede, 1999. "Statistical Inference for Measures of Income Mobility," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 218(3+4), pages 473-490, March.
  11. James E. Foster & Miguel Székely, 2008. "Is Economic Growth Good For The Poor? Tracking Low Incomes Using General Means," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1143-1172, November.
  12. James E. Foster & Artyom A. Shneyerov, 1999. "A general class of additively decomposable inequality measures," Economic Theory, Springer, vol. 14(1), pages 89-111.
  13. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
  14. Giorgio Di Pietro & Peter Urwin, 2003. "Intergenerational mobility and occupational status in Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 793-797.
  15. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
  16. Binder, Melissa & Woodruff, Christopher, 2002. "Inequality and Intergenerational Mobility in Schooling: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 249-67, January.
  17. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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Cited by:
  1. Asadullah, M. Niaz & Yalonetzky, Gaston, 2012. "Inequality of Educational Opportunity in India: Changes Over Time and Across States," World Development, Elsevier, vol. 40(6), pages 1151-1163.

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