Using Pseudo-Panels to Measure Income Mobility in Latin America

23 Pages Posted: 11 May 2011

See all articles by Jose Cuesta

Jose Cuesta

World Bank

Hugo Opo

affiliation not provided to SSRN

Georgina Pizzolitto

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: May 1, 2011

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: D3, I3, O1, income mobility, poverty, pseudo-panels, Latin America

Suggested Citation

Cuesta, Jose and Opo, Hugo and Pizzolitto, Georgina, Using Pseudo-Panels to Measure Income Mobility in Latin America (May 1, 2011). Review of Income and Wealth, Vol. 57, No. 2, pp. 224-246, 2011, Available at SSRN: https://ssrn.com/abstract=1838055 or http://dx.doi.org/10.1111/j.1475-4991.2011.00444.x

Jose Cuesta

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Hugo Opo

affiliation not provided to SSRN

No Address Available

Georgina Pizzolitto

affiliation not provided to SSRN ( email )

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