NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

William Maloney

The World Bank

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NBER Working Papers and Publications

July 2017Income Mobility, Income Risk and Welfare
with Tom Krebs, Pravin Krishna: w23578
This paper presents a framework for the quantitative analysis of individual income dynamics, mobility and welfare, with ex-ante identical individuals facing a stochastic income process and market incompleteness implying that they are unable to insure against persistent shocks to income. We show how the parameters of the income process can be estimated using repeated cross-sectional data with a short panel dimension, and use a simple consumption-saving model for quantitative analysis of mobility and welfare. Our empirical application, using data on individual incomes from Mexico, provides striking results. Most of measured income mobility is driven by measurement error or transitory income shocks and therefore (almost) welfare-neutral. Only a small part of measured income mobility is due to...
April 2005Trade Policy, Income Risk, and Welfare
with Tom Krebs, Pravin Krishna: w11255
This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and uses the estimates of this empirical analysis to evaluate the welfare effect of trade reform. The analysis proceeds in three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the relationship between trade policy and income risk. Finally, a simple dynamic incomplete-market model is used to assess the corresponding welfare costs. In the implementation of this methodology using Mexican data, we find that trade policy changes have a significant short run effect on income risk. Further, while t...

Published: Tom Krebs & Pravin Krishna & William Maloney, 2010. "Trade Policy, Income Risk, and Welfare," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 467-481, October. citation courtesy of

August 2004Measuring the Impact of Minimum Wages. Evidence from Latin America
with Jairo Mendez
in Law and Employment: Lessons from Latin America and the Caribbean, James J. Heckman and Carmen Pag├ęs, editors
 
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