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Using Pseudo-Panels to Measure Income Mobility in Latin America

Author

Listed:
  • Hugo Ñopo
  • Giorgina Pizzolitto
  • José Cuesta

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, to a lesser degree, education of the household head and dwelling characteristics.

Suggested Citation

  • Hugo Ñopo & Giorgina Pizzolitto & José Cuesta, 2007. "Using Pseudo-Panels to Measure Income Mobility in Latin America," Research Department Publications 4557, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4557
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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