MURAL - Maynooth University Research Archive Library



    The effects of measurement error and omitted variables when using transition matrices to measure intergenerational mobility


    O'Neill, Donal (2007) The effects of measurement error and omitted variables when using transition matrices to measure intergenerational mobility. Journal of Economic Inequality, 5 (2). pp. 159-178. ISSN 1569-1721

    [img]
    Preview
    Download (380kB) | Preview


    Share your research

    Twitter Facebook LinkedIn GooglePlus Email more...



    Add this article to your Mendeley library


    Abstract

    This paper examines the consequences of specification error when transition matrices are used to analyse patterns of intergenerational mobility. We show that classical measurement error in both the child’s and parent’s earnings can lead to biased results, with summary mobility measures biased by as much as 20% in some cases. Furthermore our results suggest that the extent of the bias is most severe in the tails of the distribution. Omitted conditioning variables appear to have a modest effect on transition matrices in our model.

    Item Type: Article
    Keywords: transition matrices; specification error; intergenerational mobility;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 8484
    Depositing User: Donal O'Neill
    Date Deposited: 19 Jul 2017 11:35
    Journal or Publication Title: Journal of Economic Inequality
    Publisher: Springer Verlag
    Refereed: Yes
    URI:
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

    Repository Staff Only(login required)

    View Item Item control page

    Downloads

    Downloads per month over past year

    Origin of downloads