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Two‐sample nonparametric estimation of intergenerational income mobility in the United States and Sweden

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  • Irina Murtazashvili
  • Di Liu
  • Artem Prokhorov

Abstract

We estimate intergenerational income mobility in the US and Sweden, using a new nonparametric approach. The approach addresses several empirical issues raised in the literature and applies when other estimators are infeasible. We argue that previous estimates of income mobility conceal the heterogeneous nature of the transmission mechanism by keeping mobility constant across families. The striking differences we find between mobility patterns across family backgrounds, captured by father's education, lead us to question the conventional result that intergenerational transmission of earnings is weaker in Sweden than in the United States, for important parts of the population. Estimation non‐paramétrique à deux échantillons de la mobilité intergénérationnelle du revenu aux États‐Unis et en Suède. On estime la mobilité intergénérationnelle du revenu aux États‐Unis et en Suède en utilisant une nouvelle approche non‐paramétrique. Cette approche résout plusieurs problèmes empiriques soulevés dans la littérature spécialisée et s'applique quand d'autres estimateurs sont impossibles à utiliser. On suggère que certaines estimations antérieures de la mobilité des revenus cachent la nature hétérogène du mécanisme de transmission en maintenant la mobilité constante entre les familles. Les différences frappantes qu'on découvre dans les patterns de mobilité entre familles de contextes différents (saisis par le niveau d'éducation du père) amènent à remettre en question le résultat conventionnel qui voudrait que la transmission intergénérationnelle des revenus est plus faible en Suède qu'aux États‐Unis pour une portion importante de la population.

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  • Irina Murtazashvili & Di Liu & Artem Prokhorov, 2015. "Two‐sample nonparametric estimation of intergenerational income mobility in the United States and Sweden," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(5), pages 1733-1761, December.
    • Handle: RePEc:wly:canjec:v:48:y:2015:i:5:p:1733-1761
    DOI: 10.1111/caje.12178
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    Cited by:

    1. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    2. Hirukawa, Masayuki & Prokhorov, Artem, 2018. "Consistent estimation of linear regression models using matched data," Journal of Econometrics, Elsevier, vol. 203(2), pages 344-358.
    3. Brantly Callaway & Tong Li & Irina Murtazashvili, 2021. "Nonlinear Approaches to Intergenerational Income Mobility allowing for Measurement Error," Papers 2107.09235, arXiv.org, revised Dec 2021.
    4. Bhashkar Mazumder, 2018. "Intergenerational Mobility in the United States: What We Have Learned from the PSID," The ANNALS of the American Academy of Political and Social Science, , vol. 680(1), pages 213-234, November.

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