Please use this identifier to cite or link to this item: http://hdl.handle.net/10662/8263
Title: Two-sample two-stage least squares (TSTSLS) estimates of earnings mobility: How consistent are they?
Authors: Jerrim, John
Choi de Mendizábal, Álvaro
Simancas Rodríguez, Rosa Fermina
Keywords: Mobilidad de ganancias;Dos muestras de mínimos cuadrados en dos etapas;Imputación;Earnings mobility;Two sample two stage least squares;Imputation
Issue Date: 2016
Publisher: European Survey Research Association
Abstract: Academics and policymakers have shown great interest in cross-national comparisons of intergenerational earnings mobility. However, producing consistent and comparable estimates of earnings mobility is not a trivial task. In most countries researchers are unable to observe earnings information for two generations. They are thus forced to rely upon imputed data from different surveys instead. This paper builds upon previous work by considering the consistency of the intergenerational correlation (β) as well as the elasticity (ρ), how this changes when using a range of different instrumental (imputer) variables, and highlighting an important but infrequently discussed measurement issue. Our key finding is that, while TSTSLS estimates of β and ρ are both likely to be inconsistent, the magnitude of this problem is much greater for the former than it is for the latter. We conclude by offering advice on estimating earnings mobility using this methodology.
URI: http://hdl.handle.net/10662/8263
ISSN: 1864-3361
DOI: 10.18148/srm/2016.v10i2.6277
Appears in Collections:DECON - Artículos

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