Krebs, Tom; Krishna, Pravin; Maloney, William - International Monetary Fund (IMF) - 2013
income process. The empirical application of our framework using data on individual incomes from Mexico provides striking …This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing …