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This paper analyses household income mobility in Chile between 1996 and 2001.Compared to industrialized and most developing countries, mobility has beenquite high. The purpose of this paper is to apply a binomial probit model and splitanalysis into assessment of individuals and households on the relative incomedistribution. Main results are that moving from unemployment to employmentsignificantly increases probability of moving up and decreases probability ofmoving down. Technical-professional education is promoting move up on therelative income scale and it is protecting movement down. An important resultis that high-school education decreases probability of degradation

Getting ahead, falling behind and standing still: Income mobility in Chile