Earnings mobility and measurement error [electronic resource] : a pseudo-panel approach / Francisca Antman, David J. McKenzie, Research working paper Collection Title:Policy.
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TextSeries: Policy research working papers ; 3745. | World Bank e-LibraryPublication details: [Washington, D.C. : World Bank, 2005]Subject(s): Equality -- Mexico | Income distribution -- Mexico | Labor market -- Mexico | Social mobility -- Mexico | Wages -- MexicoAdditional physical formats: Antman, Francisca.: Earnings mobility and measurement error.LOC classification: HG3881.5.W57Online resources: Click here to access online Also available in print.Abstract: "The degree of mobility in incomes is often seen as an important measure of the equality of opportunity in a society and of the flexibility and freedom of its labor market. But estimation of mobility using panel data is biased by the presence of measurement error and non-random attrition from the panel. This paper shows that dynamic pseudo-panel methods can be used to consistently estimate measures of absolute and conditional mobility in the presence of non-classical measurement errors. These methods are applied to data on earnings from a Mexican quarterly rotating panel. Absolute mobility in earnings is found to be very low in Mexico, suggesting that the high level of inequality found in the cross-section will persist over time. However, the paper finds conditional mobility to be high, so that households are able to recover quickly from earnings shocks. These findings suggest a role for policies which address underlying inequalities in earnings opportunities. "--World Bank web site.
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"The degree of mobility in incomes is often seen as an important measure of the equality of opportunity in a society and of the flexibility and freedom of its labor market. But estimation of mobility using panel data is biased by the presence of measurement error and non-random attrition from the panel. This paper shows that dynamic pseudo-panel methods can be used to consistently estimate measures of absolute and conditional mobility in the presence of non-classical measurement errors. These methods are applied to data on earnings from a Mexican quarterly rotating panel. Absolute mobility in earnings is found to be very low in Mexico, suggesting that the high level of inequality found in the cross-section will persist over time. However, the paper finds conditional mobility to be high, so that households are able to recover quickly from earnings shocks. These findings suggest a role for policies which address underlying inequalities in earnings opportunities. "--World Bank web site.
Also available in print.
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