Intra-Generational Mobility and Repeated Cross-Sections: A Three-Country Validation Exercise

45 Pages Posted: 20 Apr 2016  

Guillermo Cruces

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS); IZA

Peter F. Lanjouw

World Bank - Development Research Group (DECRG)

Leonardo R. Lucchetti

World Bank

Elizaveta Perova

World Bank

Renos Vakis

The World Bank

Mariana Viollaz

affiliation not provided to SSRN

Date Written: December 1, 2011

Abstract

This paper validates a recently proposed method to estimate intra-generational mobility through repeated cross-sectional surveys. The technique allows the creation of a "synthetic panel" -- done by predicting future or past household income using a set of simple modeling and error structure assumptions -- and thus permits the estimation of lower and upper bounds on directional mobility measures. The authors validate the approach in three different settings where good panel data also exist (Chile, Nicaragua, and Peru). In doing so, they also carry out a number of refinements to the validation procedure. The results are broadly encouraging: the methodology performs well in all three settings, especially in cases where richer model specifications can be estimated. The technique does equally well in predicting short and long-term mobility patterns and is robust to a broad set of additional "stress" and sensitivity tests. Overall, the paper lends support to the application of this approach to settings where panel data are absent.

Keywords: Services & Transfers to Poor, Poverty Reduction Strategies, Scientific Research & Science Parks, Science Education, Housing & Human Habitats

Suggested Citation

Cruces, Guillermo and Lanjouw, Peter F. and Lucchetti, Leonardo R. and Perova, Elizaveta and Vakis, Renos and Viollaz, Mariana, Intra-Generational Mobility and Repeated Cross-Sections: A Three-Country Validation Exercise (December 1, 2011). World Bank Policy Research Working Paper No. 5916. Available at SSRN: https://ssrn.com/abstract=1972830

Guillermo Cruces (Contact Author)

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) ( email )

Centro de Estudios Distributivos, Laborales y
Sociales, Calle 6 e/47 y 48
La Plata, Provincia de Buenos Aires 1900
Argentina

HOME PAGE: http://cedlas.econo.unlp.edu.ar

IZA

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

Peter F. Lanjouw

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-4529 (Phone)
202-522-1153 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/planjouw

Leonardo R. Lucchetti

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Elizaveta Perova

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Renos Vakis

The World Bank ( email )

1818 H Street NW
Washington, DC 20043
United States

Mariana Viollaz

affiliation not provided to SSRN

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