IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/29256.html
   My bibliography  Save this paper

Intergenerational Mobility in American History: Accounting for Race and Measurement Error

Author

Listed:
  • Zachary Ward

Abstract

A large body of evidence finds that relative mobility in the US has declined over the past 150 years. However, long-run mobility estimates are usually based on white samples and therefore do not account for the limited opportunities available for non-white families. Moreover, historical data measure the father’s status with error, which biases estimates toward greater mobility. Using linked census data from 1850-1940, I show that accounting for race and measurement error can double estimates of intergenerational persistence. Updated estimates imply that there is greater equality of opportunity today than in the past, mostly because opportunity was never that equal.

Suggested Citation

  • Zachary Ward, 2021. "Intergenerational Mobility in American History: Accounting for Race and Measurement Error," NBER Working Papers 29256, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:29256
    Note: DAE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w29256.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2019. "Occupational income scores and immigrant assimilation. Evidence from the Canadian census," Explorations in Economic History, Elsevier, vol. 72(C), pages 114-122.
    2. Hertz, Tom, 2008. "A group-specific measure of intergenerational persistence," Economics Letters, Elsevier, vol. 100(3), pages 415-417, September.
    3. Melvin Stephens & Takashi Unayama, 2019. "Estimating the Impacts of Program Benefits: Using Instrumental Variables with Underreported and Imputed Data," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 468-475, July.
    4. Claudia Goldin & Lawrence F. Katz, 1999. "Education and Income in the Early 20th Century: Evidence from the Prairies," NBER Working Papers 7217, National Bureau of Economic Research, Inc.
    5. Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
    6. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 151-200.
    7. Dupraz, Yannick & Ferrara, Andreas, 2021. "Fatherless: The Long-Term Effects of Losing a Father in the U.S. Civil War," CAGE Online Working Paper Series 538, Competitive Advantage in the Global Economy (CAGE).
    8. Claudia Olivetti & M. Daniele Paserman, 2015. "In the Name of the Son (and the Daughter): Intergenerational Mobility in the United States, 1850-1940," American Economic Review, American Economic Association, vol. 105(8), pages 2695-2724, August.
    9. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    10. Xi Song & Catherine G. Massey & Karen A. Rolf & Joseph P. Ferrie & Jonathan L. Rothbaum & Yu Xie, 2020. "Long-term decline in intergenerational mobility in the United States since the 1850s," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(1), pages 251-258, January.
    11. Ran Abramitzky & Leah Boustan & Katherine Eriksson & James Feigenbaum & Santiago Pérez, 2021. "Automated Linking of Historical Data," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 865-918, September.
    12. Goldin, Claudia & Katz, Lawrence F., 2000. "Education and Income in the Early Twentieth Century: Evidence from the Prairies," The Journal of Economic History, Cambridge University Press, vol. 60(3), pages 782-818, September.
    13. Haider, Steven J, 2001. "Earnings Instability and Earnings Inequality of Males in the United States: 1967-1991," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 799-836, October.
    14. Paul Bingley & Alessandro Martinello, 2017. "Measurement Error in Income and Schooling and the Bias of Linear Estimators," Journal of Labor Economics, University of Chicago Press, vol. 35(4), pages 1117-1148.
    15. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    16. George J. Borjas, 1994. "Long-Run Convergence of Ethnic Skill Differentials: The Children and Grandchildren of the Great Migration," ILR Review, Cornell University, ILR School, vol. 47(4), pages 553-573, July.
    17. Martha Bailey & Connor Cole & Catherine Massey, 2020. "Simple strategies for improving inference with linked data: a case study of the 1850–1930 IPUMS linked representative historical samples," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 53(2), pages 80-93, April.
    18. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850: Reply," American Economic Review, American Economic Association, vol. 103(5), pages 2041-2049, August.
    19. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    20. Bhashkar Mazumder & Miguel Acosta, 2015. "Using Occupation to Measure Intergenerational Mobility," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 174-193, January.
    21. Zachary Ward, 2020. "The Not-So-Hot Melting Pot: The Persistence of Outcomes for Descendants of the Age of Mass Migration," American Economic Journal: Applied Economics, American Economic Association, vol. 12(4), pages 73-102, October.
    22. Michael Hout & Avery M. Guest, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850: Comment," American Economic Review, American Economic Association, vol. 103(5), pages 2021-2040, August.
    23. Philipp Ager & Leah Boustan & Katherine Eriksson, 2021. "The Intergenerational Effects of a Large Wealth Shock: White Southerners after the Civil War," American Economic Review, American Economic Association, vol. 111(11), pages 3767-3794, November.
    24. Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2019. "Occupational income scores and immigrant assimilation. Evidence from the Canadian census," Explorations in Economic History, Elsevier, vol. 72(C), pages 114-122.
    25. Sarah J. Reber, 2010. "School Desegregation and Educational Attainment for Blacks," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 893-914.
    26. Kelly Vosters & Jørgen Modalsli, 2019. "Spillover bias in multigenerational income regressions," Discussion Papers 897, Statistics Norway, Research Department.
    27. William J. Collins & Marianne H. Wanamaker, 2017. "African American Intergenerational Economic Mobility Since 1880," NBER Working Papers 23395, National Bureau of Economic Research, Inc.
    28. Gregory Clark, 2015. "The Son Also Rises: Surnames and the History of Social Mobility," Economics Books, Princeton University Press, edition 1, number 10181-2.
    29. Yu Xie & Alexandra Killewald, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850: Comment," American Economic Review, American Economic Association, vol. 103(5), pages 2003-2020, August.
    30. Martin Nybom & Jan Stuhler, 2017. "Biases in Standard Measures of Intergenerational Income Dependence," Journal of Human Resources, University of Wisconsin Press, vol. 52(3), pages 800-825.
    31. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-1856, August.
    32. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850," American Economic Review, American Economic Association, vol. 103(4), pages 1109-1137, June.
    33. Joseph G. Altonji & Thomas A. Dunn, 1991. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives," NBER Working Papers 3724, National Bureau of Economic Research, Inc.
    34. Parman, John, 2011. "American Mobility and the Expansion of Public Education," The Journal of Economic History, Cambridge University Press, vol. 71(1), pages 105-132, March.
    35. Jeanne Cilliers & Johan Fourie, 2016. "Social mobility during South Africa’s industrial take-off," Working Papers 617, Economic Research Southern Africa.
    36. Krzysztof Karbownik & Anthony Wray, 2019. "Educational, Labor-market and Intergenerational Consequences of Poor Childhood Health," NBER Working Papers 26368, National Bureau of Economic Research, Inc.
    37. Jason Long & Joseph Ferrie, 2018. "Grandfathers Matter(ed): Occupational Mobility Across Three Generations in the US and Britain, 1850–1911," Economic Journal, Royal Economic Society, vol. 128(612), pages 422-445, July.
    38. 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.
    39. Chul-In Lee & Gary Solon, 2009. "Trends in Intergenerational Income Mobility," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 766-772, November.
    40. Claudia Goldin & Robert A. Margo, 1992. "The Great Compression: The Wage Structure in the United States at Mid-Century," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 1-34.
    41. Daniel Aaronson & Bhashkar Mazumder, 2008. "Intergenerational Economic Mobility in the United States, 1940 to 2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    42. Joseph P. Ferrie, 2005. "History Lessons: The End of American Exceptionalism? Mobility in the United States Since 1850," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 199-215, Summer.
    43. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    44. Emmanuel Saez & Gabriel Zucman, 2016. "Editor's Choice Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 519-578.
    45. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    46. Jeanne Cilliers & Johan Fourie, 2018. "Occupational Mobility during South Africa's Industrial Take‐Off," South African Journal of Economics, Economic Society of South Africa, vol. 86(1), pages 3-22, March.
    47. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    48. Martha J. Bailey & Connor Cole & Morgan Henderson & Catherine Massey, 2020. "How Well Do Automated Linking Methods Perform? Lessons from US Historical Data," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 997-1044, December.
    49. Mitchener, Kris James & McLean, Ian W., 1999. "U.S.Regional Growth And Convergence, 1880–1980," The Journal of Economic History, Cambridge University Press, vol. 59(4), pages 1016-1042, December.
    50. Saavedra, Martin & Twinam, Tate, 2020. "A machine learning approach to improving occupational income scores," Explorations in Economic History, Elsevier, vol. 75(C).
    51. George J. Borjas, 1994. "Long-Run Convergence of Ethnic Skill Differentials," NBER Working Papers 4641, National Bureau of Economic Research, Inc.
    52. Zachary Ward, 2019. "Internal Migration, Education and Upward Rank Mobility:Evidence from American History," CEH Discussion Papers 04, Centre for Economic History, Research School of Economics, Australian National University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santavirta, Torsten & Stuhler, Jan, 2024. "Name-Based Estimators of Intergenerational Mobility," IZA Discussion Papers 16725, Institute of Labor Economics (IZA).
    2. Eric A. Hanushek & Babs Jacobs & Guido Schwerdt & Rolf van der Velden & Stan Vermeulen & Simon Wiederhold, 2021. "The Intergenerational Transmission of Cognitive Skills: An Investigation of the Causal Impact of Families on Student Outcomes," NBER Working Papers 29450, National Bureau of Economic Research, Inc.
    3. Escamilla-Guerrero, David & Kosack, Edward & Ward, Zachary, 2021. "Life after crossing the border: Assimilation during the first Mexican mass migration," Explorations in Economic History, Elsevier, vol. 82(C).
    4. Paul Schüle, 2023. "Career Preferences and Socio-Economic Background," ifo Working Paper Series 395, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Antonie, Luiza & Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2022. "Intergenerational Mobility in a Mid-Atlantic Economy: Canada, 1871–1901," The Journal of Economic History, Cambridge University Press, vol. 82(4), pages 1003-1029, December.
    6. Corinth, Kevin & Larrimore, Jeff, 2024. "Has Intergenerational Progress Stalled? Income Growth over Five Generations of Americans," IZA Discussion Papers 16807, Institute of Labor Economics (IZA).
    7. Krzysztof Karbownik & Anthony Wray, 2019. "Educational, Labor-market and Intergenerational Consequences of Poor Childhood Health," NBER Working Papers 26368, National Bureau of Economic Research, Inc.
    8. Tyler Anbinder & Dylan Connor & Cormac Ó Gráda & Simone Wegge, 2021. "The Problem of False Positives in Automated Census Linking: Evidence from Nineteenth-Century New York's Irish Immigrants," Working Papers 202114, School of Economics, University College Dublin.
    9. Kevin C. Corinth & Jeff Larrimore, 2024. "Has Intergenerational Progress Stalled? Income Growth Over Five Generations of Americans," Finance and Economics Discussion Series 2024-007, Board of Governors of the Federal Reserve System (U.S.).
    10. Zafar, Rafia, 2022. "Intergenerational Mobility in Income and Consumption: Evidence from Indonesia," SocArXiv uzcfs, Center for Open Science.
    11. William J. Collins & Ariell Zimran, 2023. "Working Their Way Up? US Immigrants' Changing Labor Market Assimilation in the Age of Mass Migration," American Economic Journal: Applied Economics, American Economic Association, vol. 15(3), pages 238-269, July.
    12. Antonie, Luiza & Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2021. "Intergenerational mobility in a mid-Atlantic economy: Canada, 1871-1901," LSE Research Online Documents on Economics 108411, London School of Economics and Political Science, LSE Library.
    13. Zhu, Ziming, 2022. "Like father like son? Intergenerational immobility in England, 1851-1911," Economic History Working Papers 117588, London School of Economics and Political Science, Department of Economic History.
    14. Martha J. Bailey & Peter Z. Lin, 2024. "Marital Matching and Women’s Intergenerational Mobility in the Late 19th and Early 20th Century US," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elisa Jácome & Ilyana Kuziemko & Suresh Naidu, 2021. "Mobility for All: Representative Intergenerational Mobility Estimates over the 20th Century," Working Papers 302, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. Barbara Castillo Rico, 2020. "Trends in intergenerational homeownership mobility in France between 1960-2015," AMSE Working Papers 2008, Aix-Marseille School of Economics, France.
    3. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    5. Jonathan Davis & Bhashkar Mazumder, 2017. "The Decline in Intergenerational Mobility After 1980," Working Paper Series WP-2017-5, Federal Reserve Bank of Chicago, revised 14 Jan 2022.
    6. Julián Costas-Fernández & José-Alberto Guerra & Myra Mohnen, 2020. "Train to Opportunity: the Effect of Infrastructure on Intergenerational Mobility," Documentos CEDE 18591, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Nathaniel G. Hilger, 2015. "The Great Escape: Intergenerational Mobility in the United States Since 1940," NBER Working Papers 21217, National Bureau of Economic Research, Inc.
    8. Martha J. Bailey & Connor Cole & Morgan Henderson & Catherine Massey, 2020. "How Well Do Automated Linking Methods Perform? Lessons from US Historical Data," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 997-1044, December.
    9. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    10. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    11. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    12. Adrian Adermon & Mikael Lindahl & Mårten Palme, 2021. "Dynastic Human Capital, Inequality, and Intergenerational Mobility," American Economic Review, American Economic Association, vol. 111(5), pages 1523-1548, May.
    13. Shiue, Carol, 2019. "Social Mobility in the Long Run: A Temporal Analysis of China from 1300 to 1900," CEPR Discussion Papers 13589, C.E.P.R. Discussion Papers.
    14. James J. Feigenbaum & Hui Ren Tan, 2019. "The Return to Education in the Mid-20th Century: Evidence from Twins," NBER Working Papers 26407, National Bureau of Economic Research, Inc.
    15. Berger, Thor & Engzell, Per & Eriksson, Björn & Molinder, Jakob, 2023. "Social Mobility in Sweden before the Welfare State," The Journal of Economic History, Cambridge University Press, vol. 83(2), pages 431-463, June.
    16. Thor Berger, 2018. "Places of Persistence: Slavery and the Geography of Intergenerational Mobility in the United States," Demography, Springer;Population Association of America (PAA), vol. 55(4), pages 1547-1565, August.
    17. Ran Abramitzky & Leah Platt Boustan & Elisa Jácome & Santiago Pérez, 2019. "Intergenerational Mobility of Immigrants over Two Centuries," Working Papers 2019-6, Princeton University. Economics Department..
    18. Pekkarinen, Tuomas & Salvanes, Kjell G. & Sarvimäki, Matti, 2016. "The Evolution of Social Mobility: Norway over the 20th Century," IZA Discussion Papers 9752, Institute of Labor Economics (IZA).
    19. Ran Abramitzky & Leah Platt Boustan & Elisa Jácome & Santiago Pérez, 2019. "Intergenerational Mobility of Immigrants in the US over Two Centuries," NBER Working Papers 26408, National Bureau of Economic Research, Inc.
    20. Martha J. Bailey & Peter Z. Lin, 2024. "Marital Matching and Women’s Intergenerational Mobility in the Late 19th and Early 20th Century US," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:29256. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.