Sources of Income Persistence: Evidence from Rural El Salvador
This paper uses a unique panel dataset (1995-2001) of rural El Salvador to investigate the main sources of the persistence and variability of incomes. We propose an econometric framework where a general dynamic panel model is validly reduced to a simple linear structure with a dynamic covariance str...
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| Autores principales: | , , |
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| Formato: | Objeto de conferencia |
| Lenguaje: | Inglés |
| Publicado: |
2006
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| Materias: | |
| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/169310 |
| Aporte de: |
| Sumario: | This paper uses a unique panel dataset (1995-2001) of rural El Salvador to investigate the main sources of the persistence and variability of incomes. We propose an econometric framework where a general dynamic panel model is validly reduced to a simple linear structure with a dynamic covariance structure, which augments considerably the number of degrees of freedom usually lost in the construction of instruments to estimate standard dynamic panel models. We find that life-cycle incomes are largely explained by the relatively time-invariant productive characteristics of families and their members such as education, public goods and other assets. Controlling for unobserved heterogeneity leaves little room for pure state dependence. |
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