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Using Pseudo-Panels to Measure Income Mobility in Latin America

Hugo Ñopo (), Georgina Pizzolitto () and Jose Cuesta ()

No 4557, Research Department Publications from Inter-American Development Bank, Research Department

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.

Date: 2007-11
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Related works:
Journal Article: USING PSEUDO‐PANELS TO MEASURE INCOME MOBILITY IN LATIN AMERICA (2011)
Working Paper: Using Pseudo-Panels to Measure Income Mobility in Latin America (2011) Downloads
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