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Measuring the intergenerational correlation of worklessness

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  • Lindsey Macmillan

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Abstract

This research uses the vast developments in the measurement of the intergenerational earnings mobility correlation over the past twenty years to explore the issues surrounding the measurement of the intergenerational correlation of worklessness. The correlation is estimated for a range of data sources. The role of conventional biases, measurement error and life-cycle bias, are considered in this context. An additional bias driven by local labour market conditions is introduced. For the UK, this correlation is moderate with large economic implications. Measurement error takes a different form to that commonly observed in the mobility literature but does not appear to play a substantial role in this story. In contrast to the mobility literature, life-cycle bias may not be playing a role either. Instead, there appears to be an additional bias driven by local labour market conditions at the time of measurement that should be considered when measuring intergenerational worklessness.

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File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2011/wp278.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 11/278.

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Length: 28 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:bri:cmpowp:11/278

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Keywords: Intergenerational mobility; unemployment;

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References

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  1. Blanden, Jo & Gregg, Paul & Macmillan, Lindsey, 2011. "Intergenerational Persistence in Income and Social Class: The Impact of Within-Group Inequality," IZA Discussion Papers 6202, Institute for the Study of Labor (IZA).
  2. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, vol. 13(5), pages 551-570, October.
  3. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
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Cited by:
  1. Lindsey Macmillan, 2013. "The role of non-cognitive and cognitive skills, behavioural and educational outcomes in accounting for the intergenerational transmission of worklessness," DoQSS Working Papers 13-01, Department of Quantitative Social Science - Institute of Education, University of London.

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