 Local Intergenerational MobilityAndros Kourtellos, Christa Marr and Chih Ming Tan European Economic Review, 2020, vol. 126, issue C Abstract: Using NLSY data we investigate whether the observed patterns of economic mobility (as measured by income and educational attainment) exhibit heterogeneity across socioeconomic groups and whether the nature of the heterogeneity can be explained by different levels of persistence in the intergenerational transmission of cognitive and non-cognitive abilities across these groups. In doing so we employ the varying coefficient model (VCM) to estimate nonparametric (local) measures of intergenerational mobility of those outcome variables. By local we mean that the persistence coefficients are modeled as smooth functions of log parental permanent income. Our findings show that intergenerational mobility exhibits nonlinear patterns. Individuals with different parental income are characterized by different degrees of intergenerational mobility. Moreover, we find evidence that suggests cognitive abilities play a role in explaining intergenerational mobility. These findings provide some support for a new class of family investment models that emphasize the role of such abilities in economic mobility. Keywords: intergenerational elasticity; varying coefficient model; skills (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:126:y:2020:i:c:s0014292120300921 DOI: 10.1016/j.euroecorev.2020.103460 Access Statistics for this article European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer More articles in European Economic Review from Elsevier |
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