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Earnings Comparisons between Generations: Some Alternative Approaches

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  • Creedy, John

Abstract

This paper examines alternative procedures for estimating Galtonian "regression towards the mean" in the earnings of fathers and sons. A simple life-cycle adjustment, based on an age-earnings profile, is inadequate because of the variation in ages and the fact that the dispersion varies with age. The use of standardized earnings is recommended. When information about earnings profiles for occupations is available, the use of earnings adjusted to a common age is explored, along with the use of an estimate of "lifetime earnings." In each case, differences between cross-sectional and cohort earnings profiles are examined. The alternative approaches are illustrated using data from A. L. Bowley's Measurement of Social Phenomena. Copyright 1988 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Creedy, John, 1988. "Earnings Comparisons between Generations: Some Alternative Approaches," The Manchester School of Economic & Social Studies, University of Manchester, vol. 56(3), pages 268-281, September.
    • Handle: RePEc:bla:manch2:v:56:y:1988:i:3:p:268-81
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    Cited by:

    1. John Creedy, 1991. "Lifetime Earnings and Inequality," The Economic Record, The Economic Society of Australia, vol. 67(1), pages 46-58, March.
    2. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
    3. Mello, Ursula & Nybom, Martin & Stuhler, Jan, 2022. "A lifecycle estimator of intergenerational income mobility," Working Paper Series 2022:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Sloane, Peter J. & Gazioglu, Saziye, 1996. "Immigration and occupational status: A study of Bangladeshi and Turkish fathers and sons in the London labour market," Labour Economics, Elsevier, vol. 3(4), pages 399-424, December.

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