Biases of the ordinary least squares and instrumental variables estimators of the intergenerational earnings elasticity : revisited in the light of panel data

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Serval ID
serval:BIB_90C305F1D599
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Biases of the ordinary least squares and instrumental variables estimators of the intergenerational earnings elasticity : revisited in the light of panel data
Journal
Journal of Economic Inequality
Author(s)
Abul Naga Ramses H.
ISSN
1569-1721
Publication state
Published
Issued date
2008
Peer-reviewed
Oui
Volume
6
Number
4
Pages
323-350
Language
english
Notes
SAPHIRID:77958
Abstract
The OLS estimator of the intergenerational earnings correlation is biased towards zero, while the instrumental variables estimator is biased upwards. The first of these results arises because of measurement error, while the latter rests on the presumption that the education of the parent family is an invalid instrument. We propose a panel data framework for quantifying the asymptotic biases of these estimators, as well as a mis-specification test for the IV estimator. [Author]
Open Access
Yes
Create date
16/03/2009 17:43
Last modification date
01/10/2019 7:18
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