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Title:Using pseudo-panels to measure income mobility in Latin America PDF Logo
Authors:Cuesta, Jose
Ñopo, Hugo
Pizzolitto, Georgina
Issue Date:2007
Series/Report no.:Working paper // Inter-American Development Bank, Research Department 625
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.
Subjects:Income Mobility
Poverty
Pseudo-Panels
Latin America
JEL:D3
I3
O1
Document Type:Working Paper
Appears in Collections:Research Department Working Papers, Inter-American Development Bank

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