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Income Mobility in Costa Rica, 2001-2007

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15050-Article Text-27399-1-10-20140629 (1).pdf (1 MB)

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https://revistas.ucr.ac.cr/index.php/economicas/article/view/15050

Permanent Link

https://doi.org/10.15517/rce.v32i1.15050
 http://hdl.handle.net/11603/31102

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UMBC Economics Department
UMBC School of Public Policy
UMBC Student Collection

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Author/Creator ORCID

Date

2014-01-01

Type of Work

journal articles
Text

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Citation of Original Publication

Rowe, Samuel, T. H. Gindling, and Juan Diego Trejos. “Income Mobility in Costa Rica, 2001-2007.” Revista de Ciencias Económicas 32, no. 1 (January 1, 2014): 9–23. https://doi.org/10.15517/rce.v32i1.15050.

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CC BY-NC-ND 3.0 CR DEED Attribution-NonCommercial-NoDerivs 3.0 Costa Rica

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Abstract

In this paper we study year-to-year intra-generational income mobility in Costa Rica. To do so we use a panel data set constructed from the Household Surveys for Multiple Purposes (2001-2007) that allows us to follow the same households and persons from year-to-year. We find that there is substantial year-to-year income mobility in Costa Rica, especially in the middle of the income distribution. We also identify the factors that most affect year-to-year income mobility in Costa Rica. We find that per capita income is conditionally convergent; low-income families are more likely to experience an increase in income than are high-income families. Aside from initial per capita income, the three most important factors that explain changes in per capita household income in Costa Rica are, in order of importance: (1) changes in the employment status of household members; (2) changes in the number of dependents (children, elderly and other non-working members) in the household; and (3) the education of household members, especially the household head.