Income mobility and poverty traps: New evidence for the Southern Cone countries

This paper uses the methods proposed by Antman y Mckenzie (2007) to tests the existence of poverty traps in Argentina, Brazil and Uruguay. We model the income dynamics of households and their reactions to recessions. We also focus in income trajectories for different educational levels, and estimate...

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Detalhes bibliográficos
Autores: Arim, Rodrigo, Brum, Matías, Dean, Andrés, Leites, Martín, Salas, Gonzalo
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:México
Recursos:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/86
Acesso em linha:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/86
Access Level:acceso abierto
Palavra-chave:poverty traps and income mobility
O12
D31
I32
trampas de pobreza y movilidad de ingresos
Descrição
Resumo:This paper uses the methods proposed by Antman y Mckenzie (2007) to tests the existence of poverty traps in Argentina, Brazil and Uruguay. We model the income dynamics of households and their reactions to recessions. We also focus in income trajectories for different educational levels, and estimate the rate at which households overcome poverty situations or return to their equilibrium income level after a shock. The results do find evidence of nonlinearities in household income dynamics. Further when educational levels are taken into account, poverty traps with non-convex income dynamics are found in the cases of Argentina, Brazil and Uruguay for households whose head belongs to low educational levels. These results are in stark contrast with previous empirical applications.