Estimation of sons' intergenerational earnings mobility in the presence of censoring

Alexandra Minicozzi

Journal of Applied Econometrics, 2003, vol. 18, issue 3, 291-314

Abstract: Based on intergenerational data from the Panel Study of Income Dynamics, I provide estimates of income mobility across generations for men. Special attention is paid to issues of censoring caused by a son's unemployment. Employing non-parametric bounds estimates, I illustrate that previous income mobility estimates rely heavily on (unjustified) assumptions of exogenous selection. Assuming a son's potential income is instead a function of his reason for unemployment and work history, I re-estimate mobility. Allowing for sampling variability, the range of feasible slopes consistent with these modified bounds restrictions is 0.27 to 0.55. Copyright © 2002 John Wiley & Sons, Ltd.

Date: 2003
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DOI: 10.1002/jae.682

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