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Earnings Mobility and Measurement Error Book PDF Summary

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.

Detail Book of Earnings Mobility and Measurement Error PDF

Earnings Mobility and Measurement Error
  • Author : Francisca Antman
  • Release : 21 September 2024
  • Publisher : World Bank Publications
  • ISBN : 978186723xxxx
  • Genre : Equality
  • Total Page : 36 pages
  • Language : English
  • PDF File Size : 19,5 Mb

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