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Intergenerational Correlation Curves: Evidence from PSID

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Abstract

Correlations curves are used to measure the degree of association of father’s and son’s earnings locally, i.e. at different positions in the earnings distributions. The local correlation is nonlinear, and can be very different from local elasticities from nonparametric, or quantile regression. Elasticities should not be used to measure the local degree of association.

Suggested Citation

  • William Nilsson, 2013. "Intergenerational Correlation Curves: Evidence from PSID," DEA Working Papers 58, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    • Handle: RePEc:ubi:deawps:58
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    1. Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2012. "Intergenerational top income mobility in Sweden: Capitalist dynasties in the land of equal opportunity?," Journal of Public Economics, Elsevier, vol. 96(5), pages 474-484.
    2. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800, Elsevier.
    3. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    4. Nilsson, William & del Barrio Castro, Tomás, 2012. "Bootstrap confidence interval for a correlation curve," Statistics & Probability Letters, Elsevier, vol. 82(1), pages 1-6.
    5. Gouskova, Elena & Chiteji, Ngina & Stafford, Frank, 2010. "Estimating the intergenerational persistence of lifetime earnings with life course matching: Evidence from the PSID," Labour Economics, Elsevier, vol. 17(3), pages 592-597, June.
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    Keywords

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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