Earnings mobility and measurement error :
Antman, Francisca.
Earnings mobility and measurement error : a preudo-panel approach / Francisca Antman, David J. McKenzie, Research working paper Collection Title: policy. - Washington, D. C : World Bank, 2005. - 30p ; 27 cm. - Policy research working papers ; no. 3745 .
Also available online. "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 nonclassical 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
Includes bibliographical references.
Open access.
Wages--Mexico.
Social mobility--Mexico.
Income distribution--Mexico.
Labor market--Mexico.
Equality--Mexico.
Earnings mobility and measurement error : a preudo-panel approach / Francisca Antman, David J. McKenzie, Research working paper Collection Title: policy. - Washington, D. C : World Bank, 2005. - 30p ; 27 cm. - Policy research working papers ; no. 3745 .
Also available online. "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 nonclassical 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
Includes bibliographical references.
Open access.
Wages--Mexico.
Social mobility--Mexico.
Income distribution--Mexico.
Labor market--Mexico.
Equality--Mexico.