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

✍ Scribed by Alexandra L. Minicozzi

• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 210 KB
• Volume: 18
• Category: Article
• ISSN: 0883-7252
• DOI: 10.1002/jae.682

✦ Synopsis

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.