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When Measure Matters: Coresidence Bias and Integenerational Mobility Revisited

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  • Muñoz, Ercio
  • Siravegna, Mariel

Abstract

We provide novel evidence of the impact of coresidence bias on a large set of indicators of intergenerational mobility in education. We begin re-examining a recent claim that the correlation coecient is less biased than the regression coecient. Then, we expand our analysis to show that there are indicators with varying average levels of coresidence bias going from less than 1% to more than 10%. However, some indicators with minimal bias produce high levels of re-ranking that make them uninformative to rank populations by the level of mobility. In contrast, other indicators with large bias generate more reliable rankings.

Suggested Citation

  • Muñoz, Ercio & Siravegna, Mariel, 2023. "When Measure Matters: Coresidence Bias and Integenerational Mobility Revisited," IDB Publications (Working Papers) 12832, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:12832
    DOI: http://dx.doi.org/10.18235/0004881
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    References listed on IDEAS

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    1. Emran, M. Shahe & Shilpi, Forhad, 2017. "Estimating Intergenerational Mobility with Incomplete Data: Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures," MPRA Paper 80724, University Library of Munich, Germany.
    2. Dodin, Majed & Findeisen, Sebastian & Henkel, Lukas & Sachs, Dominik & Schüle, Paul, 2024. "Social mobility in Germany," Journal of Public Economics, Elsevier, vol. 232(C).
    3. David Card & Ciprian Domnisoru & Lowell Taylor, 2022. "The Intergenerational Transmission of Human Capital: Evidence from the Golden Age of Upward Mobility," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 39-95.
    4. James J. Feigenbaum, 2018. "Multiple Measures of Historical Intergenerational Mobility: Iowa 1915 to 1940," Economic Journal, Royal Economic Society, vol. 128(612), pages 446-481, July.
    5. 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.
    6. Neidhöfer, Guido & Serrano, Joaquín & Gasparini, Leonardo, 2018. "Educational inequality and intergenerational mobility in Latin America: A new database," Journal of Development Economics, Elsevier, vol. 134(C), pages 329-349.
    7. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
    8. Ellora Derenoncourt, 2022. "Can You Move to Opportunity? Evidence from the Great Migration," American Economic Review, American Economic Association, vol. 112(2), pages 369-408, February.
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    Cited by:

    1. Muñoz, Ercio, 2021. "The Geography of Intergenerational Mobility in Latin America and the Caribbean," SocArXiv mc78h, Center for Open Science.
    2. Ahsan, Md. Nazmul & Emran, M. Shahe & Jiang, Hanchen & Shilpi, Forhad, 2025. "Making the most of coresident data: Credible evidence on intergenerational mobility with sibling correlation," Journal of Development Economics, Elsevier, vol. 176(C).

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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