Panel Data Estimation of the Intergenerational Correlation of Incomes
We consider the problem of estimating the intergenerational correlation of incomes in the context of a panel data framework with measurement errors. We present single equation estimation methods as well as system methods under various assumptions regarding the serial correlation of the error term and taking into account possible correlations among children of the same family. Application to a sample of US parents and children leads to estimates of the order of 0.42 to 0.60 for the coefficient of income transmission.
|Date of creation:||Jul 1999|
|Date of revision:|
|Publication status:||Published in Panel Data : Future Research Directions, Essays in Honour of Professor Pietro Balestra, Krishnakumar, J. and Ronchetti, E. (eds), Elsevier, Amsterdam, 2000|
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Web page: http://www.hec.unil.ch/deep/publications/cahiers/series
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