Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46112 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 5245
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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

Files in This Item:
File
Size
629.52 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.