The effects of disasters on income mobility: Bootstrap inference and measurement error simulations
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- Bora-import 
We evaluate the impact of disasters on income mobility by drawing on “natural experiments”. While the poor have a much higher probability of remaining poor when entering a crisis compared to normal times, there is also a negative effect in the year after. Richer households seem to be unaffected. A simple bootstrap method is proposed to facilitate statistical inference for mobility matrices. Also, we simulate measurement error to illustrate its magnitude on these matrices. Small errors induce a substantial downward bias of the probability of remaining poor, while comp arisons across states seem more robust, which is promising for impact analysis.
UtgiverChr. Michelsen Institute
SerieCMI Working paper
WP 2003: 6