Earnings Mobility and Measurement Error: A Pseudo-Panel Approach.

The article discusses the use of the dynamic pseudo-panel methods to estimate the degree of income mobility in developing countries, when earnings contain measurement error. The degree of income mobility is seen as a measure of the equality of opportunity in a society and the freedom of movement in the labor market. By using the methods of pseudo-panel, the degree of income mobility could be achieved and allows mobility measurement when panel data are not available. Moreover, the mobility and earning dynamics of various countries are investigated.