Social and Behavioral Sciences Commons^™

Earnings Mobility In Times Of Growth And Decline: Argentina From 1996 To 2003, Gary S. Fields, María Laura Sánchez Puerta

Gary S Fields

In recent years, the economy of Argentina has experienced both rapid economic growth and severe economic decline. In this paper, we use a series of one-year long panels to study who gained the most in pesos when the economy grew and who lost the most in pesos when the economy contracted. Various considerations led us to expect that mobility would be divergent—that is, that the individuals who started with the highest initial earnings would enjoy the largest earnings gains in pesos. Contrary to expectations and for a wide range of specifications, mobility is found to be mostly convergent, sometimes neutral, …

Long-Term Economic Mobility And The Private Sector In Developing Countries: New Evidence, Gary S. Fields, Walter S. Bagg

Gary S Fields

[Excerpt] Consistent with the mainstream view of economic growth as a factor promoting long-term economic mobility, we hypothesize that those economies in which economic growth has been most rapid are precisely the ones that have achieved the greatest progress toward poverty reduction through improved labor market conditions, especially in private employment. We also hypothesize that the positive relationship running from economic growth through the labor market to poverty reduction continued to hold in the 1990s in essentially the same way as in earlier years when globalization was less intense. Both hypotheses are confirmed by our data. Our results therefore cast …

Reducing Poverty: The Overall Framework, Guy Pfeffermann, Gary S. Fields

Gary S Fields

[Excerpt] How private firms contribute to economic mobility and poverty reduction and what governments can do to enhance their contribution is the theme of this book. We look first at the positive role the private sector plays in economic development, a role that has received less emphasis that that of other players. We then focus on the labor market and how various mechanisms in the economy interact to affect conditions for people as workers and as consumers. The volume examines the links among the business environment, private sector development, economic growth, poverty reduction, and economic mobility. Until recently, development economists …

Escaping From Poverty: Household Income Dynamics In Indonesia, South Africa, Spain, And Venezuela, Gary S. Fields, Paul L. Cichello, Samuel Freije, Marta Menéndez, David Newhouse

Gary S Fields

[Excerpt] This study presents the main results of a larger, more technical report (Fields and others 2001) and subsequent work (Fields and others 2002) that analyzes income mobility in Indonesia, South Africa, Spain, and Venezuela. These economies were selected on the basis of the availability of panel data with which to analyze household income dynamics in the 1990s. By following households over time, we are able to investigate how households that were poor initially fared economically, relative to their richer counterparts. We can learn more about how and why households exit—and enter—poverty. To gauge income mobility, this study centers on …

What We Know (And Want To Know) About Earnings Mobility In Developing Countries, Gary S. Fields

Gary S Fields

[Excerpt] Some developing countries have experienced rapid economic growth, some slow economic growth, some no growth at all, and some economic decline. The traditional way of gauging the distributional consequences of economic growth, if in fact there was economic growth, is to use data from comparable cross sections to calculate various measures of (relative) inequality and (absolute) poverty. The very large literature on inequality and poverty will not be reviewed here. A newer approach in the development literature is to study the distributional consequences of economic growth (or non-growth) by using data for the same recipient units for two or …

A Brief Review Of The Literature On Earnings Mobility In Developing Countries, Gary Fields

Gary S Fields

[Excerpt] The literature on income and earnings mobility falls into three categories:

1. Macro mobility studies address the entire economy. They ask the question, how much income mobility and/or earnings mobility is there in the economy?
2. A second group of studies, micro mobility studies, examines patterns of income and earnings change over time for different individuals or groups. They ask the questions, which individuals or households experience movements of what magnitudes, and what are the correlates and determinants of these movements?
3. Within the micro mobility studies are a number of studies that look specifically at poverty dynamics …

U.S. Earnings Mobility: Comparing Survey-Based And Administrative-Based Estimates, Lisa M. Dragoset, Gary S. Fields

Gary S Fields

Earnings mobility has been studied both at the macro level (how much of a certain kind of mobility is there in the economy?) and at the micro level (what are the correlates of change in income or position?). Many empirical mobility studies provide estimates of the amount of mobility in a country over time and the correlates of individual mobility within the income distribution. While measurement error is recognized as potentially important at both these levels, very little is known about the degree to which earnings mobility estimates are affected by measurement error. In this paper, we use a new …

Income Mobility In Latin America, Gary S. Fields, Robert Duval Hernández, Samuel Freije Rodríguez, María Laura Sánchez Puerta

Gary S Fields

[Excerpt] In the last decades Latin American countries have experienced substantial macroeconomic instability. While the region as a whole experienced economic growth during most of the 1990’s and 2000’s, there were also years of stagnation as well as economic decline.

Earnings Mobility In Argentina, Mexico, And Venezuela: Testing The Divergence Of Earnings And The Symmetry Of Mobility Hypotheses, Gary S. Fields, Robert Duval Hernández, Samuel Freije Rodríguez, María Laura Sánchez Puerta

Gary S Fields

This paper examines changes in individual earnings during positive and negative growth periods in three Latin American economies: Argentina, Mexico, and Venezuela. We ask whether those individuals who start in the best economic position are those who experience the largest earnings gains or the smallest earnings losses; this is the “divergent mobility” hypothesis. We also compare periods of positive economic growth with those of negative economic growth, asking whether those groups of individuals that experience large positive earnings gains when the economy is growing are the same as those that experience large earnings losses when the economy is contracting; this …