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Making the most of coresident data: Credible evidence on intergenerational mobility with sibling correlation

Md. Nazmul Ahsan, M. Shahe Emran, Hanchen Jiang and Forhad Shilpi

Journal of Development Economics, 2025, vol. 176, issue C

Abstract: Many available data sets are not used for estimating intergenerational mobility owing to concerns about sample truncation bias in coresident data. Using data from Bangladesh, Chile, Ghana, India, Indonesia, and Mexico, we report the first evidence that the bias in estimated sibling correlation, a broad measure of relative mobility, is small in coresident samples (4.30%), much smaller than that in intergenerational regression coefficient (10.25%). The low bias reflects offsetting effects of sample truncation on the numerator and denominator of the sibling correlation formula. Sibling correlation estimates from coresident samples preserve the correct cross-country ranking 90%–95% times. Our findings have far-reaching implications for researchers working on intergenerational mobility.

Keywords: Coresident data; Sample truncation bias; Intergenerational educational mobility; Sibling correlation; Intergenerational Regression Coefficient (IGRC); Intergenerational Correlation (IGC); Developing countries; Census; Demographic and Health Survey (DHS); Living Standards Measurement Study (LSMS) (search for similar items in EconPapers)
JEL-codes: J62 O12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:176:y:2025:i:c:s0304387825000598

DOI: 10.1016/j.jdeveco.2025.103508

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