Using longitudinal datasets from Chile and Nicaragua, we compare intragenerational earnings mobility over a decade for two economies with similar inequality levels but divergent positions in equality of opportunities within the Latin American region. Our results suggest that earnings mobility, in terms of origin independence of individual ranking in the earnings distribution, is greater in Chile than in Nicaragua.
We would like to thank Maria Cecilia Soto for her excellent contribution in preliminary versions of this paper and participants at the 5th IZA/World Bank conference “Employment and Development” 2010 and the 17th Network on Inequality and Poverty (NIP) workshop 2011 for their helpful suggestions. We also want to thank comments from Javier Olivera and two anonymous referees. The authors are responsible for all results and views, not representing the Inter-American Development Bank.
Novella, R., Ripani, L., Suaya, A., Tejerina, L. and Vazquez, C. (2016), "Trading Places: A Decade of Earnings Mobility in Chile and Nicaragua", Income Inequality Around the World (Research in Labor Economics, Vol. 44), Emerald Group Publishing Limited, Bingley, pp. 213-237. https://doi.org/10.1108/S0147-912120160000044013
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