Using Pseudo-Panels to Measure Income Mobility in Latin America

Posted: 25 Apr 2011

See all articles by Hugo Ñopo

Hugo Ñopo

Inter-American Development Bank (IDB); IZA Institute of Labor Economics

Giorgina Pizzolitto

affiliation not provided to SSRN

José Cuesta

Inter-American Development Bank (IDB)

Multiple version iconThere are 3 versions of this paper

Date Written: November 2007

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.

Suggested Citation

Nopo, Hugo and Pizzolitto, Giorgina and Cuesta, José, Using Pseudo-Panels to Measure Income Mobility in Latin America (November 2007). IDB Working Paper No. 526. Available at SSRN: https://ssrn.com/abstract=1820914

Hugo Nopo (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Giorgina Pizzolitto

affiliation not provided to SSRN

No Address Available

José Cuesta

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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