Autor: Trombetta Martin
JEL: D31, O15, J60
In recent years, a branch of the economic literature has analyzed household income movements in longitudinal datasets. Previous research has shown that household income is considerably more volatile in Latin America than in developed economies, though little is known so far about the distributional implications of such income changes. This paper exploits the unique database built in Beccaria et al. (2021) from Latin American household surveys for seven countries in 2002-2015 to analyze the impact of household income movements on income distribution. We combine the analysis from traditional indicators in the literature with a novel methodology that quantifies this precise phenomenon and allows for comparisons and rankings across time and countries. Our results show considerable differences in the equalizing effect of income mobility across countries and population groups.