Economics at your fingertips  

Nonlinear Approaches to Intergenerational Income Mobility allowing for Measurement Error

Brantly Callaway, Tong Li and Irina Murtazashvili

Papers from

Abstract: This paper considers nonlinear measures of intergenerational income mobility such as (i) the effect of parents' permanent income on the entire distribution of child's permanent income, (ii) transition matrices, and (iii) rank-rank correlations when observed annual incomes are treated as measured-with-error versions of permanent incomes. We develop a new approach to identifying joint distributions in the presence of "two-sided" measurement error, and, hence, identify essentially all parameters of interest in the intergenerational income mobility literature. Using recent data from the 1997 National Longitudinal Study of Youth, we find that accounting for measurement error notably reduces various estimates of intergenerational mobility.

Date: 2021-07, Revised 2021-12
New Economics Papers: this item is included in nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Papers from
Bibliographic data for series maintained by arXiv administrators ().

Page updated 2023-08-12
Handle: RePEc:arx:papers:2107.09235