Heterogeneous Income Profiles and Lifecycle Bias in Intergenerational Mobility Estimation
By Martin Nybom, Jan Stuhler. The Journal of human resources, 2016
160 citations recorded by the source corpus.
Using short snapshots of income in intergenerational mobility estimation causes “lifecycle bias” if the snapshots cannot mimic lifetime outcomes. We use uniquely long series of Swedish income data to show that this bias is large and to examine current strategies to reduce it. We confirm that lifecycle bias is smallest when incomes are measured around midlife, a central implication from a widely adopted generalization of the classical errors-in-variables model. However, the model cannot predict the ideal age of measurement or eliminate lifecycle bias at other ages. We illustrate how extensions of this model can reduce the bias further.
Subfields: Health, Management Science and Operations Research, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/daf3c3d2b4e8c44cddad924ee167584cf229b664
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In Management Science and Operations Research
In Sociology and Political Science
Citations in the corpus
- Two-Sample Two-Stage Least Squares (TSTSLS) Estimates of Earnings Mobility: How Consistent are They? (2014, unknown): “ever, Nybom and Stuhler (2016) suggest that putting a precise age”
- Biases in Standard Measures of Intergenerational Income Dependence (2017, background): “Grawe (2006), Nybom and Stuhler (2016), and Gregg, Macmillan, and Vittori (2017) find rather strong age dependency.”