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Movilidad de ingreso y trampas de pobreza : nueva evidencia para los países del Cono Sur

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  • Rodrigo Arim

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Matías Brum

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Andrés Dean

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Martín Leites

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Gonzalo Salas

    ()
    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

This paper tests the existence of poverty traps in three Southern Cone countries: Argentina, Brazil and Uruguay. We apply the methodology developed by Antman and McKenzie (2005): based on pseudopanels, we model the income dynamics of households and analyze the existence of heterogeneity in their path and their reactions to recessions. We also focus in income trajectories for different educational levels, and estimate the rate at which households overcome poverty situations or return to their equilibrium income level after a shock. The record of high volatility and strong macroeconomic crisis shared by Argentina, Uruguay and to a lesser extent Brazil, are an opportunity to carry out this type of analysis, which in turn is justified as a contribution to the design of public policies. This papers aims at identifying situations where the future trajectory of households’ income will be systematically below a certain threshold, as a result of past performance. General estimates do not confirm the presence of poverty traps in these three countries during the study period. However, when educational levels are taken into account, poverty traps are found in the cases of Brazil and Uruguay for households whose head belongs to low educational levels.

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Bibliographic Info

Paper provided by Instituto de Economía - IECON in its series Documentos de Trabajo (working papers) with number 10-06.

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Length: 35 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:ulr:wpaper:dt-10-06

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Keywords: poverty tramps; income mobility; Uruguay; Argentina; Brazil;

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  1. Aaberge, Rolf, et al, 2002. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 443-69, December.
  2. Francisca Antman & David McKenzie, 2007. "Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(6), pages 1057-1083.
  3. Luis Casanova, 2008. "Trampas de Pobreza en Argentina: Evidencia Empírica a Partir de un Pseudo Panel," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0064, CEDLAS, Universidad Nacional de La Plata.
  4. C. Berti Ceroni, 1998. "Poverty Traps and Human Capital Accumulation," Working Papers 315, Dipartimento Scienze Economiche, Universita' di Bologna.
  5. Olga Cantó-Sánchez, . "Income mobility in Spain: How much is there," Studies on the Spanish Economy, FEDEA 17, FEDEA.
  6. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  7. Jarvis, Sarah & Jenkins, Stephen P, 1998. "How Much Income Mobility Is There in Britain?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 428-43, March.
  8. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 42(2), pages 178-199.
  9. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, Elsevier, vol. 71(2), pages 349-377, November.
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Cited by:
  1. Paula Carrasco, 2012. "El efecto de las condiciones de ingreso al mercado de trabajo en los jóvenes uruguayos. Un análisis basado en la protección de la seguridad social," Documentos de Trabajo (working papers), Instituto de Economía - IECON 12-13, Instituto de Economía - IECON.

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