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Using Pseudo-Panels to Measure Income Mobility in Latin America

Jose Cuesta (), Hugo Ñopo () and Georgina Pizzolitto ()
Additional contact information
Georgina Pizzolitto: World Bank

No 5449, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 education of the household head, the latter subject to distinctive effects across levels of attainment and transition in and out of poverty.

Keywords: Latin America; poverty; income mobility; pseudo-panels (search for similar items in EconPapers)
JEL-codes: D3 I3 O1 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-01
New Economics Papers: this item is included in nep-dev, nep-lam and nep-ltv
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Published in: Review of Income and Wealth, 2011, 57 (2), 224-246

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http://ftp.iza.org/dp5449.pdf (application/pdf)

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 (2007) Downloads
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