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Stochastic Monotonicity in Intergenerational Mobility Tables

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Abstract

The aim of this paper is to test for stochastic monotonicity in intergenerational socio-economic mobility tables. In other words we question whether having a parent from a high socio-economic status is never worse than having one with a lower status. We ?rst test a set of 149 intergenerational mobility tables in 35 different countries and ?nd that monotonicity cannot be rejected in hardly any table. We then explain how a number of covariates such as education, cognitive and non-cognitive skills can be used to investigate whether monotonicity still holds after conditioning on these variables. Based on the NCDS cohort data from the UK, our results provide evidence that monotonicity holds even conditionally.

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File URL: http://www.finance.uts.edu.au/research/wpapers/wp156.pdf
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Paper provided by Finance Discipline Group, UTS Business School, University of Technology, Sydney in its series Working Paper Series with number 156.

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Length: 22
Date of creation: 01 May 2008
Date of revision:
Publication status: Published as: Dardanoni, V., Fiorini, M. and Forcina, A., 2012, "Stochastic Monotonicity in Intergenerational Mobility Tables", Journal of Applied Econometrics, 27(1), 85-107.
Handle: RePEc:uts:wpaper:156
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Keywords: intergenerational mobility; stochastic monotonicity;

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  1. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," NBER Working Papers 12006, National Bureau of Economic Research, Inc.
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  7. Diego Restuccia & Carlos Urrutia, 2004. "Intergenerational Persistence of Earnings: The Role of Early and College Education," American Economic Review, American Economic Association, vol. 94(5), pages 1354-1378, December.
  8. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, Oxford University Press, vol. 121(3), pages 999-1028.
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  13. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
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  17. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
  18. Bartolucci F. & Forcina A. & Dardanoni V., 2001. "Positive Quadrant Dependence and Marginal Modeling in Two-Way Tables With Ordered Margins," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 1497-1505, December.
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Cited by:

  1. Yoram Amiel & Michele Bernasconi & Michele Bernasconi & Frank A Cowell & Valentino Dardanoni & Valentino Dardanoni, 2013. "Do We Value Mobility?," STICERD - Public Economics Programme Discussion Papers 17, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. R. Colombi & A. Forcina, 2016. "Testing order restrictions in contingency tables," Metrika- International Journal for Theoretical and Applied Statistics, Springer, vol. 79(1), pages 73-90, January.
  3. Pirmin Fessler & Peter Mooslechner & Martin Schürz, 2012. "Intergenerational transmission of educational attainment in Austria," Empirica, Springer, vol. 39(1), pages 65-86, February.
  4. Delgado, Miguel A. & Escanciano, Juan Carlos, 2012. "Distribution-free tests of stochastic monotonicity," Journal of Econometrics, Elsevier, vol. 170(1), pages 68-75.
  5. R. Colombi & A. Forcina, 2016. "Testing order restrictions in contingency tables," Metrika- International Journal for Theoretical and Applied Statistics, Springer, vol. 79(1), pages 73-90, January.
  6. Francesco Andreoli & Claudio Zoli, 2014. "Measuring Dissimilarity," Working Papers 23/2014, University of Verona, Department of Economics.
  7. Evans, R.J. & Forcina, A., 2013. "Two algorithms for fitting constrained marginal models," Computational Statistics & Data Analysis, Elsevier, vol. 66(C), pages 1-7.
  8. Kanbur, Ravi & Stiglitz, Joseph E, 2015. "Dynastic Inequality, Mobility and Equality of Opportunity," CEPR Discussion Papers 10542, C.E.P.R. Discussion Papers.

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