Short-term income mobility in Latin America in the 2000s: intensity and characteristics

In: Socio-economic review, Volume 20, Issue 3, p. 1039-1067

Abstract

Abstract:
The aim of this article is to compare the intensity and characteristics of short-term income mobility during the 2000s in Argentina, Brazil, Costa Rica, Ecuador, Mexico, Paraguay and Peru, countries with very dissimilar labor market structures and social protection coverage. This period is particularly relevant since Latin America experienced sustained economic growth together with improvements in labor and social conditions. Results show that the degree of mobility is higher in the region than in certain developed countries. The presence of a large number of income rises in all seven cases is another main finding of the analysis. However, at the same time, a great proportion of households suffered a reduction in their income. Finally, differences in mobility between countries are more closely linked to those in labor market structures than to those derived from disparities in overall economic performance during the period under analysis.