The Distribution of Income Shocks during Crises : An Application of Quantile Analysis to Mexico, 1992-95

Moving beyond the simple comparisons of averages typical of most analyses of household income shocks, this article employs quantile analysis to generate a complete distribution of such shocks by type of household during the 1995 crisis in Mexico. It compares the distributions across normal and crisis periods to see whether observed differences were due to the crisis or are intrinsic to the household types. Alternatively, it asks whether the distribution of shocks during normal periods was a reasonable predictor of vulnerability to income shocks during crises. It finds large differences in the distribution of shocks by household types both before and during the crisis but little change in their relative positions during the crisis. The impact appears to have been spread fairly evenly. Households headed by people with less education (poor), single mothers, or people working in the informal sector do not appear to experience disproportionate income drops either in normal times or during crises.

Bibliographic Details

Main Authors:	Bosch, Mariano, Maloney, William F., Cunningham, Wendy V.
Format:	Journal Article biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2004-05
Subjects:	AGGREGATE DEMAND, AMERICAN ECONOMIC REVIEW, BORROWING, CAPITAL MARKETS, CASE STUDIES, CENTRAL BANK, CONSUMER PRICE, CONSUMER PRICE INDEX, CRISES, CROSS-SECTIONAL DATA, DATA SET, DEPENDENT VARIABLE, DEVALUATION, DEVELOPMENT ECONOMICS, DISTRIBUTION OF INCOME, EARNING, ECONOMETRICS, ECONOMIC REVIEW, ECONOMICS RESEARCH, EXPLANATORY VARIABLE, EXPLANATORY VARIABLES, FINANCIAL SECTOR, HIGHER VOLATILITY, HOUSEHOLD COMPOSITION, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD MEMBERS, INCOME, INCOME GROWTH, INCOME LEVELS, INCOME QUINTILES, INCOME RISK, INCOME SECURITY, INCOME SHOCK, INCOME SHOCKS, INFLATION, JOB SECURITY, LABOR FORCE, LABOR INCOME, LABOR LAWS, LABOR MARKET, LABOR MARKETS, LAYOFFS, LEVEL OF EDUCATION, LIBERALIZATION, LOW INCOME, MACROECONOMIC SHOCKS, MEASUREMENT ERROR, MEDIAN INCOME, MONETARY POLICY, MORTALITY, MORTALITY RATES, NEGATIVE COEFFICIENT, NEGATIVE SHOCK, NEGATIVE SHOCKS, 0 HYPOTHESIS, OLDER WORKERS, PER CAPITA INCOME, PER CAPITA INCOMES, POLICY DESIGN, POLICY PERSPECTIVE, POLICY RESEARCH, POSITIVE SHOCKS, POVERTY LINE, PRIMARY EDUCATION, QUANTILE REGRESSIONS, REAL INCOME, REAL WAGE, REAL WAGES, REGRESSION TECHNIQUES, REMUNERATION, RETIREMENT, REVIEW OF ECONOMICS, RISK PREMIUM, SAFETY, SAFETY NETS, SIGNIFICANT DIFFERENCES, SIGNIFICANT IMPACT, SMALL BUSINESS, STANDARD ERRORS, UNEMPLOYED, UNEMPLOYMENT, URBAN EMPLOYMENT, VOLATILITY, WAGE STRUCTURE, WORK FORCE,
Online Access:	http://documents.worldbank.org/curated/en/2004/05/17742607/distribution-income-shocks-during-crises-application-quantile-analysis-mexico-1992-95-vol-201-1 https://hdl.handle.net/10986/17159
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