Is Entrepreneurship a Channel of Social Mobility in Latin America?

Francesca Castellani () and Eduardo Lora

No 4559, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper provides a summary of the findings contained in a forthcoming issue of the Latin American Journal of Economics on entrepreneurship in Latin America as a vehicle for upward social mobility, especially for the middle class. The income persistence coefficients estimated with pseudo-panel data for Colombia, Ecuador, and Uruguay indicate that entrepreneurial activity is a channel of intergenerational mobility, while the estimates of asset persistence for Mexico using a special survey show that entrepreneurship increases mobility across generations. Although persistence coefficients do not indicate the direction of such mobility, the estimates of income differentials between entrepreneurs and non-entrepreneurs for Ecuador and Mexico lend support to the hypothesis that upward mobility dominates.

Keywords: social; mobility (search for similar items in EconPapers)
JEL-codes: E21 I31 O15 (search for similar items in EconPapers)
Date: 2013-07
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Journal Article: Is Entrepreneurship a Channel of Social Mobility in Latin America? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:4559

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