Scielo RSS <![CDATA[Latin american journal of economics]]> vol. 51 num. 2 lang. es <![CDATA[SciELO Logo]]> <![CDATA[<b>IS ENTREPRENEURSHIP A CHANNEL OF SOCIAL MOBILITY IN LATIN AMERICA?</b>]]> This paper summarizes the findings in this special issue of the Latin American Journal of Economics on entrepreneurship's role in upward social mobility in Latin America, especially for the middle class, often considered the cradle of entrepreneurship. The income-persistent coefficients estimated with pseudo-panel data for Colombia, Ecuador, and Uruguay indicate that entrepreneurship is a channel of intergenerational mobility, while asset persistence estimates for Mexico show that entrepreneurship increases mobility across generations. Although persistence coefficients don't indicate the direction of such mobility, estimates of income differentials between entrepreneurs and non-entrepreneurs for Ecuador and Mexico support the hypothesis that upward mobility dominates. <![CDATA[<b>INTERGENERATIONAL MOBILITY AND ENTREPRENEURSHIP IN URUGUAY</b>]]> We estimate the relationship between parents' education and income and children's schooling in Uruguay (1982-2010), interpreting this as a measure of intergenerational social mobility. Using three methodologies we report that such mobility has decreased over time. Improvements in education in the 1980s and 1990s were unevenly distributed. Computing an index of inequality of opportunity, we show that for mandatory education, this has remained constant, and for non-mandatory education, the increasing trend in inequality observed during the 1990s stagnated in the early 2000s. Finally, using instrumental variables we find that entrepreneurship is associated with greater social mobility. <![CDATA[<b>INTRA-GENERATIONAL SOCIAL MOBILITY AND ENTREPRENEURSHIP IN URUGUAY</b>]]> In this paper we follow an income-based, time-dependence approach to measure the impact of entrepreneurship on social mobility in Uruguay. The working definition of entrepreneur is business owners with employees. Using household surveys from 1982 to 2010 we show that their income level, income volatility, and evolution over the business cycle are consistent with them being opportunity entrepreneurs. Self-employed workers are more similar to necessity entrepreneurs. We find significant evidence that entrepreneurship is associated with greater social mobility while self-employment is not. <![CDATA[<b>IS ENTREPRENEURSHIP INHERITED? A STUDY OF INTERGENERATIONAL SOCIAL MOBILITY IN MEXICO</b>]]> The 2006 ESRU Survey on Social Mobility in Mexico is used to identify determinants of the decision to become an entrepreneur and analyze entrepreneurs' intergenerational (i.e., respondents-parents) household wealth mobility. Entrepreneurs are distinguished from own-account workers. First, we find that entrepreneurship is strongly determined by the father being an entrepreneur and not necessarily by the individual's initial wealth or educational attainment. Second, the mean effect of entrepreneurial activity on individual income is positive and greater for those whose parents belonged to the extreme ends of the socioeconomic distribution. Third, it is more likely for entrepreneurs to experience greater upward wealth mobility than non-entrepreneurs. <![CDATA[<b>MIDDLE-CLASS ENTREPRENEURS AND INADEQUATE PROSPECTS FOR SOCIAL MOBILITY THROUGH ENTREPRENEURSHIP IN COLOMBIA</b>]]> This paper explores whether Colombia's middle class is a cradle of entrepreneurship that drives innovation and business growth and fosters social mobility. Microeconomic data are used to characterize entrepreneurs by income group and business characteristics. While entrepreneurs appear to enjoy more income mobility than the average worker, it is not clear whether this is true for middle-class entrepreneurs in particular or if it is a result of entrepreneurship. Nor is there evidence that middle-class entrepreneurs' activity boosts economic growth. Instead, the findings suggest that businesses run by these entrepreneurs are characterized by low productivity. <![CDATA[<b>MOBILITY AND ENTREPRENEURSHIP IN ECUADOR</b>: <b>A DYNAMIC PSEUDO-PANEL APPROACH</b>]]> Does entrepreneurship contribute to improving social mobility in Ecuador? This paper constructs a pseudo-panel to analyze the dynamic effect of entrepreneurship on Ecuadorian household incomes during the period 20022010. Using dynamic panel estimation techniques and three estimation scenarios, the paper finds a significant level of unconditional mobility and an important effect of entrepreneurship (conditional mobility).