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Inference for rank-rank regressions

Author

Listed:
  • Denis Chetverikov

    (Institute for Fiscal Studies)

  • Daniel Wilhelm

    (Institute for Fiscal Studies)

Abstract

The slope coefficient in a rank-rank regression is a popular measure of intergenerational mobility. In this article, we first show that commonly used inference methods for this slope parameter are invalid. Second, when the underlying distribution is not continuous, the OLS estimator and its distribution may be sensitive to how ties in the ranks are handled. Motivated by these findings we derive the asymptotic distribution of the OLS estimator and provide valid inference methods for a general class of rank-rank regression specifications.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Denis Chetverikov & Daniel Wilhelm, 2023. "Inference for rank-rank regressions," IFS Working Papers WCWP23/23, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:cwp23/23
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    File URL: https://ifs.org.uk/sites/default/files/2023-11/CWP2323-Inference-for-rank-rank-regressions.pdf
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    References listed on IDEAS

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    Cited by:

    1. Marc-Oliver Pohle & Jan-Lukas Wermuth & Christian H. Wei{ss}, 2025. "Asymptotic Inference for Rank Correlations," Papers 2512.14609, arXiv.org, revised Feb 2026.
    2. Richard Audoly & Rory McGee & Sergio Ocampo & Gonzalo Paz-Pardo, 2024. "The life-cycle dynamics of wealth mobility," IFS Working Papers W24/12, Institute for Fiscal Studies.
    3. Alice Krozer & Luis Andrés Estrada, 2024. "¿Quién (des)cuida sus oportunidades? Género, cuidado y desigualdad social," Ensayos Revista de Economía, Universidad Autónoma de Nuevo León, vol. 43(3), pages 39-84, September.

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