| 1. |
- Manduca, Robert, et al.
(author)
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Measuring Absolute Income Mobility : Lessons from North America and Europet
- 2024
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In: American Economic Journal. - : American Economic Association. - 1945-7782 .- 1945-7790. ; 16:2, s. 1-30
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Journal article (peer-reviewed)abstract
- We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income mobility. We show that the commonly used "copula and marginals" approximation methods perform well across countries in our sample, and the greatest challenges to their accuracy stem not from assumptions about relative mobility rates over time but from the use of nonrepresentative marginal income distributions. We also provide a multicountry analysis of sensitivity to specification decisions related to age of income measurement, income concept, family structure, and price index. (JEL D31, G51, I31, J12, J31, J62)
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| 2. |
- Bratberg, Espen, et al.
(author)
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A Comparison of Intergenerational Mobility Curves in Germany, Norway, Sweden, and the US
- 2017
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In: Scandinavian Journal of Economics. - : Wiley. - 0347-0520 .- 1467-9442. ; 119:1, s. 72-101
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Journal article (peer-reviewed)abstract
- We examine intergenerational mobility differences between Germany, Norway, Sweden, and the US. Using ranks, we find that the US is substantially less intergenerationally mobile than the three European countries and that the most mobile region of the US is less mobile than the least mobile regions of Norway and Sweden. Using a linear estimator of income share mobility, we find that the four countries have very similar rates of intergenerational mobility. However, when we use non-parametric versions of rank and income share mobility, we find that the US tends to experience lower upward mobility at the bottom of the income distribution than Norway and Sweden.
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| 3. |
- Edin, Per-Anders, et al.
(author)
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The Rising Return to Noncognitive Skill
- 2022
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In: American Economic Journal. - 1945-7782 .- 1945-7790. ; 14:2, s. 78-100
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Journal article (peer-reviewed)abstract
- This paper uses administrative data from Sweden to document trends in the labor market returns to skills. Between 1992 and 2013, the economic return to noncognitive skill—a psychologist-assessed measure of teamwork and leadership skill—roughly doubled. The return to cognitive skill was relatively stable and decreased modestly during the 2000s, however. Among men with similar levels of education, the return to noncognitive skill is higher than the return to cognitive skill. The increasing return to noncognitive skill is driven by changes at the top of the wage distribution and by sorting into higher-paying occupations.
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| 4. |
- Forsberg, Erika, Docent, 1976-
(author)
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Labor-market inequality : Essays on the roles of families, firms, location, and criminal records
- 2024
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Doctoral thesis (other academic/artistic)abstract
- Essay 1 Individuals working in larger labor markets tend to earn more than those working in smaller labor markets, but the reason for this is still unclear. This paper studies whether larger cities provide better occupational skill matches by combining machine learning techniques with data on individuals’ productive skills matched with employer data to construct a novel measure of match quality. I show that occupational skill-match quality is higher for individuals living in large local labor markets. Conditional on skills, differences in match quality explain around 30 percent of the city-size wage gap. The higher match quality in larger labor markets is related to a more diversified occupation structure and more learning possibilities in these markets.Essay 2 (with Martin Nybom and Jan Stuhler) To what extent does the sorting of workers across firms contribute to intergenerational persistence and why? We show that socioeconomic disparities in firm pay premia account for about one third of the intergenerational elasticity of income in Sweden. Firm pay gaps open already at career start, implying that children from more privileged backgrounds find more favorable entry points to the labor market. Their pay advantage widens further in their early careers as they climb the firm pay ladder faster, switch firms more frequently, and secure higher pay gains conditional on switching. Skill sorting explains most of the divergence over the career, but not the initial pay gaps at the career start.Essay 3 (with Akib Khan and Olof Rosenqvist) Family background shapes outcomes across the life cycle. While the importance of family background varies across countries, less is known about heterogeneities across social groups within a country. Using Swedish data, we compare sibling correlations in skills, schooling, and earnings across fine-grained socioeconomic status (SES) groups. The result from the study shows that sibling correlations decline with parental socioeconomic status. This pattern holds for skills, schooling, and earnings.Essay 4 (with Hans Grönqvist, Susan Niknami and Mårten Palme) We investigate the effect of being included in Sweden’s first online criminal database, which facilitates anonymous and free name-based searches for individuals charged with a crime. Leveraging administrative rules that restricted the identification of individuals charged before specific dates, we estimate the effects by comparing outcomes of exposed and non-exposed individuals. We find significant adverse effects of exposure on earnings but not on employment or criminal recidivism. However, there are significantly stronger detrimental effects on both labor market outcomes and recidivism in defendant subgroups such as those with at least a high school degree, acquitted individuals, and those living in areas with a relatively low concentration of ex-criminals. Our results suggest that stigma is a potentially important but previously unappreciated mechanism explaining responses to criminal justice interactions.
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| 5. |
- Nybom, Martin, 1981-
(author)
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Essays on Educational Choice and Intergenerational Mobility
- 2012
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Doctoral thesis (other academic/artistic)abstract
- This thesis consists of four self-contained essays. The first essay concerns educational choice and the returns to college in Sweden. I apply a recently introduced econometric framework that allows for self selection and treatment effect heterogeneity. I also examine the influence of cognitive and noncognitive ability on college choice and the returns to college.Essays two through four concern different aspects of intergenerational income mobility. In the second essay, we study the impact on mobility estimates from heterogeneous income profiles and, more specifically, life-cycle bias. We use nearly career-long income measures for both fathers and sons to give a detailed account of this bias and assess recent methods to deal with it.In the third essay, we present a simple model of intergenerational transmission and use it to analyze the dynamic behavior of the intergenerational income elasticity following structural changes. We find that past structural frameworks, for example in the form of past policies or institutions, matter for current trends in mobility.The fourth essay provides a cross-country perspective on intergenerational income mobility. We construct comparable data sets for Sweden and the UK and account for country differences in the role of parental income for various productivity traits of children. Finally, we examine whether such differences can explain the country difference in intergenerational income mobility.
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| 6. |
- Nybom, Martin, 1981-, et al.
(author)
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Heterogeneous income profiles and life-cycle bias in intergenerational mobility estimation
- 2016
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In: The Journal of human resources. - : University of Wisconsin Press. - 0022-166X .- 1548-8004. ; 51:1, s. 239-268
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Journal article (peer-reviewed)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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| 7. |
- Nybom, Martin, 1981-, et al.
(author)
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Heterogeneous Income Profiles and Life-Cycle Bias in Intergenerational Mobility Estimation
- 2011
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Reports (other academic/artistic)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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