Arbeitspapier
On Synthetic Income Panels
In many developing countries, the increasing public interest in monitoring economic inequality and mobility is hindered by the scarce availability of longitudinal data. Synthetic panels based on matching individuals with the same time-invariant characteristics in consecutive cross-sections have been recently proposed as a substitute to such data. We extend the methodology to construct such synthetic panels in several directions by: a) explicitly assuming the unobserved or time variant determinants of (log) income are AR(1) and relying on pseudo-panel procedures to estimate the corresponding auto-regressive coefficient; b) abstracting from (log) normality assumptions; c) generating a close to perfect match of the terminal year income distribution and d) considering the whole income mobility matrix rather than mobility in and out of poverty. We exploit the cross-sectional dimension of a national-representative Mexican panel survey to evaluate the validity of this approach. With the median estimate of the AR coefficient, the income mobility matrix in the synthetic panel closely approximates that of the genuine matrix observed in the actual panel, except for out-lying values of the AR coefficient.
- Language
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Englisch
- Bibliographic citation
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Series: GLO Discussion Paper ; No. 809
- Classification
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Wirtschaft
Personal Income, Wealth, and Their Distributions
Measurement and Analysis of Poverty
- Subject
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Synthetic panel
income mobility
Mexico
- Event
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Geistige Schöpfung
- (who)
-
Moreno, Héctor
Bourguignon, François
Dang, Hai-Anh
- Event
-
Veröffentlichung
- (who)
-
Global Labor Organization (GLO)
- (where)
-
Essen
- (when)
-
2021
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Moreno, Héctor
- Bourguignon, François
- Dang, Hai-Anh
- Global Labor Organization (GLO)
Time of origin
- 2021
Other Objects (12)
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Using pseudo-panels to measure income mobility in Latin America
Using pseudo-panels to measure income mobility in Latin America
On PPP, unit roots and panels
Natural resources and income inequality in developed countries: Synthetic control method evidence
Estimating poverty transitions in Mozambique using synthetic panels: A validation exercise and an application to cross-sectional survey data
Assortative matching on income
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On Synthetic Income Panels
Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections
Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections
The effects of income and inflation on financial development: Evidence from heterogeneous panels
Using pseudo-panels to measure income mobility in Latin America
Using pseudo-panels to measure income mobility in Latin America
On PPP, unit roots and panels
Natural resources and income inequality in developed countries: Synthetic control method evidence
Estimating poverty transitions in Mozambique using synthetic panels: A validation exercise and an application to cross-sectional survey data
Assortative matching on income
Shock identification of macroeconomic forecasts based on daily panels
Reflections on "Testing for Unit Roots in Heterogeneous Panels"
On Synthetic Income Panels
Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections
Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections
The effects of income and inflation on financial development: Evidence from heterogeneous panels
Using pseudo-panels to measure income mobility in Latin America
Using pseudo-panels to measure income mobility in Latin America
On PPP, unit roots and panels
Natural resources and income inequality in developed countries: Synthetic control method evidence
Estimating poverty transitions in Mozambique using synthetic panels: A validation exercise and an application to cross-sectional survey data
Assortative matching on income
Shock identification of macroeconomic forecasts based on daily panels