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Earnings Mobility and Measurement Error
Francisca Antman
David J. McKenzie
其他書名
A Pseudo-panel Approach
出版
World Bank Publications
, 2005
URL
http://books.google.com.hk/books?id=zEnY3IO4pM8C&hl=&source=gbs_api
EBook
SAMPLE
註釋
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.