Lifecycle bias in estimates of intergenerational earnings persistence

By Nathan D. Grawe. 2006

273 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/c84456677f4a57ce546f7279f728fe85dc44d69e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Sociology and Political Science

Citations in the corpus

Biases in Standard Measures of Intergenerational Income Dependence (2017, background): “Grawe (2006) and Haider and Solon (2006) document how the tendency of early-career (latecareer) income gaps to understate (overstate) lifetime differences generate life-cycle bias in elasticity estimates.”
OECD SOCIAL, EMPLOYMENT AND MIGRATION WORKING PAPERS Intergenerational Transmission of Disadvantage: Mobility or Immobility across Generations? A Review of the Evidence for OECD Countries (2007, unknown): “Several studies (e.g. Jenkins, 1987, Reville, 1995; Chadwick and Solon, 2002; Dunn, 2004; Grawe, 2006; Mazumder, 2001, 2005a, 2005b; Lucas and Pekkala, 2004, 2005; Hertz, 2005b; Haider and Solon, 2006; Vogel 2006; and Böhlmark and Linquist, 2006) have investigated the effects of varying the ages at ”
Equality of opportunity and luck: Definitions and testable conditions, with an application to income in France (2009, background): “Another advantage of this sample selection rule is that household income will be more representative of their lifetime income (Grawe 2006).”
Heterogeneous Income Profiles and Lifecycle Bias in Intergenerational Mobility Estimation (2016, background): “2 While the early estimates were severely attenuated from approximation of lifetime values by noisy single-year income data for parents, Jenkins (1987) identifies systematic deviations of current from lifetime values over the life cycle as an additional source of inconsistency.”
Family Background and Income During the Rise of the Welfare State: Brother Correlations in Income for Swedish Men Born 1932-1968 (2009, unknown): “…income as a proxy for lifetime income leads to inconsistent parameter estimates, also known as life-cycle bias, even when the proxy is used as a dependent variable (as it is here).8 8 For theoretical treatments of life-cycle bias in intergenerational estimates, see Jenkins (1987) and Grawe (2006).”
Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons (2007, background): “Suppose that all families are borrowing-constrained, possibly because the optimal level of investment is higher for children with high ability; see, for example, Han and Mulligan (2001) and Grawe and Mulligan (2002).”
Inequality Of Opportunity And Growth (2013, background): “Another advantage of this rule is that individual earnings will be more representative of the individual’s lifetime income (Grawe, 2005).”
Intergenerational Income Mobility in Urban China (2012, background): “However, Grawe (2006) and Haider and Solon (2006) point out that attenuation bias can be caused by using log current earnings when children are in their 20s (a point at which current income may be quite different from average lifetime income).”