Social mobility through technological assets: a regional microsimulation model
Journal
International Journal of Economics and Finance Studies
ISSN
1309-8055
Publisher
Social Sciences Research Society
Date Issued
2025
Author(s)
Type
text::journal::journal article
Abstract
Access to technology is a significant factor in facilitating upward social mobility by reducing disparities in access to information and fostering educational and employment opportunities. This study develops a microsimulation model for a region in Mexico to estimate the probabilities of households achieving social mobility through a two-year renewable microcredit scheme for acquiring a computer with internet access over a 14-year period. The data utilised include the National Income and Expenses Survey and a regional social mobility survey. The methodology incorporates principal component analysis to construct an Asset Index, ordered logistic regression for asset selection, a Markov Chain for transition probability estimation, and Monte Carlo simulation. The findings reveal that 13.75% of households could progress to a higher wealth quintile while sustaining their ability to repay the microcredit. The study advocates for targeting public programmes aimed at social mobility towards specific sectors rather than implementing universal initiatives. Additionally, it recommends enhancing credit conditions through public-private partnerships to mitigate inequality. ©The authors © (2024), (Social Sciences Research Society). All rights reserved.
License
Acceso Restringido
How to cite
DelaTorre-Diaz, L., Ramirez-Perez, H. X. (2024). Social Mobility Through Technological Assets: A Regional Microsimulation Model. International Journal of Economics and Finance Studies, 16(03), 139-165. doi: 10.34109/ijefs.202416307