Earnings Mobility in Times of Growth and Decline: Argentina from 1996 to 2003
In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one-year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. To answer these questions, we test two hypotheses both unconditionally and conditionally. The ?divergence of earnings? hypothesis holds that in any given year, the highest earning individuals are those who experienced the largest earnings gains or the smallest earnings losses in pesos. The ?symmetry of gains and losses? hypothesis holds that those groups that gained the most in pesos when the economy grew are those that lost the most in pesos when the economy contracted. Both hypotheses are decisively rejected in the data. Rather, we find that it is the lowest income individuals and groups who gain the most in pesos, whether in good times or in bad. Thus, the panel data analysis performed in this paper presents a picture of economic growth that is much more pro-poor than one gets from cross sectional inequality comparisons.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.wider.unu.edu/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Grimm, 2007.
"Removing the anonymity axiom in assessing pro-poor growth,"
Journal of Economic Inequality,
Springer, vol. 5(2), pages 179-197, August.
- Michael Grimm, 2005. "Removing the anonymity axiom in assessing pro-poor growth," Ibero America Institute for Econ. Research (IAI) Discussion Papers 113, Ibero-America Institute for Economic Research.
- Gabriela Inchauste & Ana Corbacho & Mercedes Garcia-Escribano, 2003.
"Argentina; Macroeconomic Crisis and Household Vulnerability,"
IMF Working Papers
03/89, International Monetary Fund.
- Ana Corbacho & Mercedes Garcia-Escribano & Gabriela Inchauste, 2007. "Argentina: Macroeconomic Crisis and Household Vulnerability ," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 92-106, 02.
- Guillermo Cruces & Quentin Wodon, 2007.
"Risk-adjusted poverty in Argentina: measurement and determinants,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 43(7), pages 1189-1214.
- Guillermo Cruces & Quentin Wodon, 2003. "Risk-adjusted poverty in Argentina: measurement and determinants," LSE Research Online Documents on Economics 6550, London School of Economics and Political Science, LSE Library.
- Fields, Gary S. & Cichello, Paul & Freije, Samuel & Menéndez, Marta & Newhouse, David, 2003.
"Household income dynamics : a four-country story,"
Economics Papers from University Paris Dauphine
123456789/1562, Paris Dauphine University.
- Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
- McKenzie, David J, 2004. "Aggregate Shocks and Urban Labor Market Responses: Evidence from Argentina's Financial Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 719-58, July.
- Quentin Wodon, 2001. "Income mobility and risk during the business cycle: Comparing adjustments in labour markets in two Latin-American countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 449-461, July.
- Fields, Gary S. & Duval Hernández, Robert & Freije-Rodriguez, Samuel & Sanchez Puerta, Maria Laura, 2007. "Earnings Mobility in Argentina, Mexico, and Venezuela: Testing the Divergence of Earnings and the Symmetry of Mobility Hypotheses," IZA Discussion Papers 3184, Institute for the Study of Labor (IZA).
- George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
- Leonardo Gasparini & Walter Sosa Escudero, 2000.
"Assessing Aggregate Welfare: Growth and Inequality in Argentina,"
Department of Economics, Working Papers
021, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
- Leonardo Gasparini & Walter Sosa, 2001. "Assessing Aggregate Welfare: Growth and Inequality in Argentina," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(113), pages 49-71.
- Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
- Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
- Robert H. Topel, 1997. "Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 55-74, Spring.
- Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
- Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Gary S. Field & Robert Duval Hernandez & Samuel Freije & Maria Laura Sanchez Puerta, 2007. "Intragenerational Income Mobility in Latin America," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:rp2008-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse)
If references are entirely missing, you can add them using this form.