Galtonian regression of intergenerational income linkages : biased procedures, a new estimator and mean-square error comparisons

Détails

ID Serval
serval:BIB_88BE1CEFBF71
Type
Rapport: document publié par une institution, habituellement élément d'une série.
Collection
Publications
Institution
Titre
Galtonian regression of intergenerational income linkages : biased procedures, a new estimator and mean-square error comparisons
Auteur(s)
Abul Naga Ramses H.
Editeur
Université de Lausanne Ecole des HEC/DEEP
Détails de l'institution
Cahiers de recherches économiques
Adresse
Lausanne
Date de publication
2000
Nombre de pages
26 p.
Notes
Mention de responsabiblité : / Ramses H. Abul Naga
SAPHIRID:60347
Résumé
Because the permanent incomes of parents are children are typically unobserved, the estimation of the intergenerational correlation via the use of proxy variables entails an errors-in-variables bias. By solving a system of moment equations for income observed at a given year, and a T-period average of this variable, we derive an analytical form for the signal to total variance ratio. In turn, we propose a simple estimator of the intergenerational elasticity via division of the OLS estimator by this quantity. Estimates of the intergenerational elasticity derived from a PSID sample range between 0.34 and 0.69. The averaging estimator provides intermediary values between OLS and the proposed estimator. Persistence is higher for family income measures than labor market outcomes. Estimates generally increase for moving average specifications in comparison to the assumption that measurement errors are uncorrelated. The three estimators are further examined in the light of their mean-square errors (square bias plus variance). [Author]
Mots-clé
Income , Intergenerational Relations
Création de la notice
14/03/2008 11:21
Dernière modification de la notice
20/08/2019 15:47
Données d'usage