Sources of Income Persistence: Evidence from Rural El Salvador

This article uses a unique panel data set of rural El Salvador to investigate the main sources of persistence and variability in incomes. Our econometric framework validly reduces a general panel model to a dynamic linear model with a covariance structure that can be estimated efficiently with short...

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Main Authors:	Sosa-Escudero, Walter, Marchionni, Mariana, Arias, Omar
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150
Online Access:	http://hdl.handle.net/10986/4957

id	okr-10986-4957
recordtype	oai_dc
spelling	okr-10986-49572021-04-23T14:02:20Z Sources of Income Persistence: Evidence from Rural El Salvador Sosa-Escudero, Walter Marchionni, Mariana Arias, Omar Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 This article uses a unique panel data set of rural El Salvador to investigate the main sources of persistence and variability in incomes. Our econometric framework validly reduces a general panel model to a dynamic linear model with a covariance structure that can be estimated efficiently with short panels. We find that life-cycle incomes are largely explained by the productive characteristics of families, such as education and access to public goods, and unobserved heterogeneity. Pure state dependence, arising from income shocks persistency, is of second order. In El Salvador, frequent transitory shocks are a more important source of income variation than in developed countries. 2012-03-30T07:30:34Z 2012-03-30T07:30:34Z 2011 Journal Article Journal of Income Distribution 09266437 http://hdl.handle.net/10986/4957 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article El Salvador
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150
spellingShingle	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Sosa-Escudero, Walter Marchionni, Mariana Arias, Omar Sources of Income Persistence: Evidence from Rural El Salvador
geographic_facet	El Salvador
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This article uses a unique panel data set of rural El Salvador to investigate the main sources of persistence and variability in incomes. Our econometric framework validly reduces a general panel model to a dynamic linear model with a covariance structure that can be estimated efficiently with short panels. We find that life-cycle incomes are largely explained by the productive characteristics of families, such as education and access to public goods, and unobserved heterogeneity. Pure state dependence, arising from income shocks persistency, is of second order. In El Salvador, frequent transitory shocks are a more important source of income variation than in developed countries.
format	Journal Article
author	Sosa-Escudero, Walter Marchionni, Mariana Arias, Omar
author_facet	Sosa-Escudero, Walter Marchionni, Mariana Arias, Omar
author_sort	Sosa-Escudero, Walter
title	Sources of Income Persistence: Evidence from Rural El Salvador
title_short	Sources of Income Persistence: Evidence from Rural El Salvador
title_full	Sources of Income Persistence: Evidence from Rural El Salvador
title_fullStr	Sources of Income Persistence: Evidence from Rural El Salvador
title_full_unstemmed	Sources of Income Persistence: Evidence from Rural El Salvador
title_sort	sources of income persistence: evidence from rural el salvador
publishDate	2012
url	http://hdl.handle.net/10986/4957
_version_	1764393388259409920

Sources of Income Persistence: Evidence from Rural El Salvador

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