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When Measure Matters: Coresidency, Truncation Bias, and Intergenerational Mobility in Developing Countries

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  • M. Shahe Emran
  • William Greene
  • Forhad Shilpi

Abstract

Biases from truncation caused by coresidency restriction have been a challenge for research on intergenerational mobility. Estimates of intergenerational schooling persistence from two data sets show that the intergenerational regression coefficient, the most widely used measure, is severely biased downward in coresident samples. But the bias in intergenerational correlation is much smaller and is less sensitive to the coresidency rate. The paper provides explanations for these results. Comparison of intergenerational mobility based on the intergenerational regression coefficient across countries, gender, and over time can be misleading. Much progress on intergenerational mobility in developing countries can be made with the available data by focusing on intergenerational correlation.

Suggested Citation

  • M. Shahe Emran & William Greene & Forhad Shilpi, 2018. "When Measure Matters: Coresidency, Truncation Bias, and Intergenerational Mobility in Developing Countries," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 589-607.
    • Handle: RePEc:uwp:jhriss:v:53:y:2018:i:3:p:589-607
    Note: DOI: 10.3368/jhr.53.3.0216-7737R1
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    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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