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Sweetman, Olive (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
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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: | 8524 |
| Identification Number: | 0.1007/s10888-006-9035-7 |
| Depositing User: | Olive Sweetman |
| Date Deposited: | 26 Jul 2017 14:08 |
| Journal or Publication Title: | Journal of Economic Inequality |
| Publisher: | Springer Verlag |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/8524 |
| 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 |
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