Estimating Income Mobility in Argentina with pseudo-panel data

Abstract

The degree of mobility in the individual income is an important matter in those societies where the aggregated inequality has been broadened. Being economic mobility a long term phenomenon by nature, its measuring requires a long panel data to perform it, but the lack of such data and the existence of the common biased due to measurement error are a warning to this methodology. However, it is possible to obtain consistent estimations of the mobility using a dynamic pseudo-panel. This method is applied to data on incomes in Argentina for the period 1985-2004.