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Intra-generational mobility and repeated cross-sections : a three-country validation exercise

Author

Listed:
  • Cruces, Guillermo
  • Lanjouw, Peter
  • Lucchetti, Leonardo
  • Perova, Elizaveta
  • Vakis, Renos
  • Viollaz, Mariana

Abstract

This paper validates a recently proposed method to estimate intra-generational mobility through repeated cross-sectional surveys. The technique allows the creation of a"synthetic panel"-- done by predicting future or past household income using a set of simple modeling and error structure assumptions -- and thus permits the estimation of lower and upper bounds on directional mobility measures. The authors validate the approach in three different settings where good panel data also exist (Chile, Nicaragua, and Peru). In doing so, they also carry out a number of refinements to the validation procedure. The results are broadly encouraging: the methodology performs well in all three settings, especially in cases where richer model specifications can be estimated. The technique does equally well in predicting short and long-term mobility patterns and is robust to a broad set of additional"stress"and sensitivity tests. Overall, the paper lends support to the application of this approach to settings where panel data are absent.

Suggested Citation

  • Cruces, Guillermo & Lanjouw, Peter & Lucchetti, Leonardo & Perova, Elizaveta & Vakis, Renos & Viollaz, Mariana, 2011. "Intra-generational mobility and repeated cross-sections : a three-country validation exercise," Policy Research Working Paper Series 5916, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5916
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    References listed on IDEAS

    as
    1. Francisca Antman & David J. McKenzie, 2007. "Earnings Mobility and Measurement Error: A Pseudo-Panel Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 56(1), pages 125-161, October.
    2. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
    3. Dang, Hai-Anh & Lanjouw, Peter & Luoto, Jill & McKenzie, David, 2014. "Using repeated cross-sections to explore movements into and out of poverty," Journal of Development Economics, Elsevier, vol. 107(C), pages 112-128.
    4. Bourguignon, Francois & Goh, Chor-ching & Kim, Dae Il, 2004. "Estimating individual vulnerability to poverty with pseudo-panel data," Policy Research Working Paper Series 3375, The World Bank.
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    Citations

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    Cited by:

    1. Mr. Tom Krebs & Mr. William Maloney & Mr. Pravin Krishna, 2013. "Income Mobility and Welfare," IMF Working Papers 2013/024, International Monetary Fund.
    2. Erika Pesántez, 2014. "Análisis de movilidad social en el Ecuador," Analítika, Analítika - Revista de Análisis Estadístico/Journal of Statistical Analysis, vol. 8(2), pages 53-68, Diciembre.
    3. Tom Krebs & Pravin Krishna & William F Maloney, 2019. "Income Mobility, Income Risk, and Welfare," World Bank Economic Review, World Bank Group, vol. 33(2), pages 375-393.
    4. Marco Stampini & Marcos Robles & Mayra Sáenz & Pablo Ibarrarán & Nadin Medellín, 2016. "Poverty, vulnerability, and the middle class in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-44, December.
    5. Himanshu & Peter Lanjouw, 2020. "Income mobility in the developing world: Recent approaches and evidence," WIDER Working Paper Series wp-2020-7, World Institute for Development Economic Research (UNU-WIDER).
    6. Luis López-Calva & Eduardo Ortiz-Juarez, 2014. "A vulnerability approach to the definition of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 23-47, March.
    7. Davalos, Maria E. & Meyer, Moritz, 2015. "Moldova : a story of upward economic mobility," Policy Research Working Paper Series 7167, The World Bank.
    8. Krebs, Tom & Krishna, Pravin & Maloney, William F., 2012. "Income Risk, Income Mobility and Welfare," IZA Discussion Papers 7056, Institute of Labor Economics (IZA).
    9. Dang,Hai-Anh H. & Lanjouw,Peter F., 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
    10. Marco Stampini & Marcos Robles & Mayra Sáenz & Pablo Ibarrarán & Nadin Medellín, 2016. "Poverty, vulnerability, and the middle class in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-44, December.
    11. Isidro Soloaga & Gerardo Franco & Victor Perez, 2013. "Chronic Poverty, Poverty Dynamics, and Vulnerability: Mexico 2006-2010," Working Papers 0213, Universidad Iberoamericana, Department of Economics.

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    Keywords

    Services&Transfers to Poor; Poverty Reduction Strategies; Scientific Research&Science Parks; Science Education; Housing&Human Habitats;
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