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Intergenerational mobility and sample selection in short panels

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  • Francesconi, Marco
  • Nicoletti, Cheti

Abstract

Using data from the first eleven waves of the BHPS, this paper measures the extent of the selection bias induced by adulthood and coresidence conditions bias that is expected to be severe in short panels on measures of intergenerational mobility in occupational prestige. We try to limit the impact of other selection biases, such as those induced by labour market restrictions that are typically imposed in intergenerational mobility studies, by using different measures of socioeconomic status that account for missing labour market information. We stress four main results. First, there is evidence of an underestimation of the true intergenerational elasticity, the extent of which ranges between 10 and 25 percent. Second, the proposed methods used to correct for the selection bias seem to be unable to attenuate it, except for the propensity score weighting procedure, which performs well in most circumstances. This result is confirmed both under the assumption of missing-at-random data as well as under the assumption of not-missing-at-random data. Third, the two previous sets of results (direction and extent of the bias, and differential abilities to correct for it) are also robust when we account for measurement error. Fourth, restricting the sample to a period shorter than the eleven waves under analysis leads to a severe sample selection bias. In the cases when the analysis is limited to four waves, this bias may range from 27 to 80 percent.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2004-17.

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Date of creation: 01 Sep 2004
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Publication status: published
Handle: RePEc:ese:iserwp:2004-17

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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References

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Citations

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Cited by:
  1. Sayema H. Bidisha, . "Intergenerational Earnings Mobility of Immigrants and Ethnic Minorities in the UK," Discussion Papers 09/10, University of Nottingham, GEP.
  2. Maribel Jiménez, 2011. "Un Análisis Empírico de las No Linealidades en la Movilidad Intergeneracional del Ingreso. El caso de la Argentina," CEDLAS, Working Papers 0114, CEDLAS, Universidad Nacional de La Plata.
  3. Cervini-Plá, María, 2011. "Intergenerational earnings and income mobility in Spain," MPRA Paper 34942, University Library of Munich, Germany.
  4. Quheng, Deng & Gustafsson, Björn Anders & Li, Shi, 2012. "Intergenerational Income Persistency in Urban China," IZA Discussion Papers 6907, Institute for the Study of Labor (IZA).
  5. Nicoletti Cheti & Ermisch John F, 2008. "Intergenerational Earnings Mobility: Changes across Cohorts in Britain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-38, January.
  6. Ken Yamada, 2012. "Family Background and Economic Outcomes in Japan," Working Papers 23-2012, Singapore Management University, School of Economics.
  7. Ermisch, John & Francesconi, Marco & Siedler, Thomas, 2005. "Intergenerational Economic Mobility and Assortative Mating," IZA Discussion Papers 1847, Institute for the Study of Labor (IZA).
  8. Sarah Brown & John Sessions & Karl Taylor, 2004. "What Will I Be When I Grow Up? An Analysis of Childhood Expectations and Career Outcomes," Discussion Papers in Economics 05/2, Department of Economics, University of Leicester.
  9. Cervini-Plá, María, 2012. "Exploring the sources of earnings transmission in Spain," MPRA Paper 36093, University Library of Munich, Germany.
  10. repec:ese:iserwp:2008-20 is not listed on IDEAS
  11. Massimiliano Bratti & Daniele Checchi & Guido de Blasio, 2008. "Does the expansion of higher education increase the equality of educational opportunities? Evidence from Italy," Temi di discussione (Economic working papers) 679, Bank of Italy, Economic Research and International Relations Area.
  12. Maribel Jimenez & Monica Jimenez, 2009. "La Movilidad Intergeneracional del Ingreso: Evidencia para Argentina," CEDLAS, Working Papers 0084, CEDLAS, Universidad Nacional de La Plata.
  13. repec:ese:iserwp:2005-10 is not listed on IDEAS

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