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Estimating Intergenerational Mobility with Incomplete Data: Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures

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  • Emran, M. Shahe
  • Shilpi, Forhad

Abstract

Most of the household surveys available in developing countries suffer from sample truncation because coresidency is used to define household membership. This paper provides evidence on truncation bias in the rank-based relative and absolute mobility estimates in coresident samples, and compares with the bias in intergenerational regression coefficient (IGRC) and intergenerational correlation (IGC). Using surveys from Bangladesh and India that include non-resident children, we find that the slope estimates are biased downward, while the intercept estimates are biased upward, but expected years of schooling conditional on parental education are overestimated in coresident samples. The downward bias in rank correlation is much smaller than that in IGRC, and comparable to that in IGC. The upward bias in the intercept is the largest in the regression used for IGC. Truncation bias in rank-based absolute mobility estimates is the lowest in most cases. The results add to an emerging body of evidence that the rank-based measures are more robust than the widely-used IGRC and IGC in estimating intergenerational mobility with incomplete data.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:80724
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    Cited by:

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    2. Xu Sun & Xiaolu Lei & Baisen Liu, 2021. "Mobility Divergence in China? Complete Comparisons of Social Class Mobility and Income Mobility," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 687-709, January.
    3. Finaret, Amelia B. & Masters, William A., 2020. "Can shorter mothers have taller children? Nutritional mobility, health equity and the intergenerational transmission of relative height," Economics & Human Biology, Elsevier, vol. 39(C).
    4. Gu, Xiang & Hua, Sheng & McKenzie, Tom & Zheng, Yanqiao, 2022. "Like father, like son? Parental input, access to higher education, and social mobility in China," China Economic Review, Elsevier, vol. 72(C).
    5. Emran, M. Shahe & Ferreira, Francisco & Jiang, Yajing & Sun, Yan, 2019. "Intergenerational Educational Mobility in Rural Economy: Evidence from China and India," MPRA Paper 94121, University Library of Munich, Germany.
    6. Florencia Torche, 2019. "Educational mobility in developing countries," WIDER Working Paper Series wp-2019-88, World Institute for Development Economic Research (UNU-WIDER).
    7. Muñoz, Ercio & Siravegna, Mariel, 2023. "When Measure Matters: Coresidence Bias and Integenerational Mobility Revisited," IDB Publications (Working Papers) 12832, Inter-American Development Bank.

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    More about this item

    Keywords

    Rank correlation; Rank-based Absolute Mobility; Coresidency; Truncation Bias; Intergenerational Mobility; Developing Countries; Intergenerational Regression Coefficient (IGRC); Intergenerational Correlation (IGC); Bangladesh; India;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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