Measuring Income Mobility using Pseudo-Panel Data

Type Journal Article - The Philippine Statistician
Title Measuring Income Mobility using Pseudo-Panel Data
Author(s)
Volume 62
Issue 2
Publication (Day/Month/Year) 2013
Page numbers 71-91
URL http://www.philstat.org.ph/files/images/ring_Income_Mobility_using_Pseudo-Panel_Data_0.pdf
Abstract
To reconcile the need of providing a more dynamic perspective of the evolution of income distribution with the lack of panel data, several techniques have been offered to construct pseudo-panel data from repeated cross-sectional surveys. Using actual panel data from the Philippines, this study evaluates the performance of four pseudo-panel techniques in measuring a wide array of income mobility indicators. Preliminary results suggest that methods with more flexible income model specifications perform better than those with highly parameterized models. More importantly, these flexible pseudo-panel procedures produced estimates of poverty dynamics and movement-based indices which are quite close to
the estimates computed from the actual panel data. Nevertheless, further improvements are warranted to be able to develop a more satisfactory estimation procedure for indices measuring temporal dependence and the inequality-reducing effect of income mobility.

Related studies

»
»
»