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http://hdl.handle.net/10419/46112
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| Title: | | Empirical strategies to eliminate life-cycle bias in the intergenerational elasticity of earnings literature  |
| Authors: | | Stuhler, Jan Leonard |
| Issue Date: | | 2010 |
| Series/Report no.: | | Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5245 |
| Abstract: | | I argue that the empirical strategies for estimation of the intergenerational elasticity of lifetime earnings that are currently employed in the literature might not eliminate bias arising from lifecycle effects. Specifically, I demonstrate that procedures based on the generalized errors-invariables model suggested by Haider and Solon (2006) or the consideration of differential earnings growth rates across subpopulations may not yield unbiased or consistent estimates. I further argue that instrumental variable estimators will not identify an upper bound for the true population parameter. |
| Subjects: | | intergenerational mobility intergenerational elasticity of earnings life-cycle bias generalized errors-in-variables model |
| JEL: | | J62 C23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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