| 1. |
- Nybom, Martin, et al.
(författare)
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Biases in Standard Measures of Intergenerational Income Dependence
- 2017
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Ingår i: The Journal of human resources. - 0022-166X .- 1548-8004. ; 52:3, s. 800-825
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Tidskriftsartikel (refereegranskat)abstract
- Estimates of the most common mobility measure, the intergenerational elasticity, can be severely biased if snapshots are used to approximate lifetime income. However, little is known about biases in other popular dependence measures. Using long Swedish income series, we provide such evidence for log-linear and rank correlations, and rank-based transition probabilities. Attenuation bias is considerably weaker in rank-based measures. Life-cycle bias is strongest in the elasticity, moderate in log-linear correlations, and small in rank-based measures. However; there are important exceptions: persistence in the tails of the distribution is considerably higher and long-distance downward mobility lower than estimates from short-run income suggest.
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| 2. |
- Nybom, Martin, 1981-, et al.
(författare)
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Heterogeneous income profiles and life-cycle bias in intergenerational mobility estimation
- 2016
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Ingår i: The Journal of human resources. - : University of Wisconsin Press. - 0022-166X .- 1548-8004. ; 51:1, s. 239-268
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Tidskriftsartikel (refereegranskat)abstract
- 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.
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| 3. |
- Nybom, Martin, 1981-, et al.
(författare)
-
Heterogeneous Income Profiles and Life-Cycle Bias in Intergenerational Mobility Estimation
- 2011
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Research on intergenerational income mobility is based on current income since data onlifetime income are typically not available for two generations. However, using snapshots ofincome over shorter periods causes a so-called life-cycle bias if the snapshots cannot mimiclifetime outcomes. Using uniquely long series of Swedish income data, we show that currentempirical strategies do not eliminate such bias. We focus on the widely adopted generalizederrors-in-variables model and find that the remaining bias is substantial (20% of the trueelasticity from left-side measurement error at the most relevant age range). IV estimatessuffer from even stronger life-cycle effects and do not provide an upper bound.Inconsistencies stem from the interaction of two factors: heterogeneity in income profilescannot be fully accounted for, and idiosyncratic deviations from average profiles correlatewith individual characteristics and family background. We discuss implications of our findingsfor other literatures that depend on measurement of long-run income and income dynamics.
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