The mobility of labor income in the Uruguayan labor market: A pseudo-panel approach

This paper aims to characterize the dynamics of labor income by exploiting the pseudo panel structure of the Continuous Household Survey of Uruguay between 1986 and 2005. For this purpose, a mobility measure based on the beta convergence is used. The paper addresses the discussion of the relationship between beta convergence and mobility, resulting in a measure of order mobility: the Gini mobility index. The close relationship between mobility and inequality also motivates the estimation of different concentration indices. The results confirm a low mobility of income observed in a context of stability or slight growth of inequality. On the other hand, an approximation is made to the mobility of transitory income, associated with the labor market adjustment processes. High values ​​of this mobility are observed during the nineties on the occasion of the important transformations of the labor market, while descending from the beginning of the recessive phase where much of the adjustment was made via employment.

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