MEASURING INTERGENERATIONAL INCOME MOBILITY
Measurement error and life-cycle bias, these are two important concerns in approaching the measurement of intergenerational income mobility that will be discussed in the remainder of the class. You need to know what they are, how they can potentially bias results for a host of different statistics used to gauge mobility, and you also need to be familiar with the different methods to address them to obtain unbiased results. The 1992 paper by Gary Solon, and his 2006 coauthored paper are must reads to inform your understanding of these issues.
Download the Lecture 5 slides.
Solon, Gary (1992). “Intergenerational Income Mobility in the United States.” American Economic Review. 82 (3): 393–408.
Haider, Steven and Gary Solon (2006). “Life-Cycle Variation in the Association between Current and Lifetime Earnings.” American Economic Review. 96 (4): 1308–20.
Nybom, Martin and Jan Stuhler (2015). “Biases in Standard Measures of Intergenerational Dependence.” July.
Mitnik, Pablo A., Victoria Bryant, Michael Weber, David B. Grusky (2015). “New Estimates of Intergenerational Mobility Using Administrative Data.” July.
Chadwick, Laura. and Solon, Gary (2002). “Intergenerational income mobility among daughters.” American Economic Review. 92 (1): 335–44.