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

The rank-based measures of intergenerational mobility have become increasingly popular in economics literature. Recent evidence shows that rank-based measures are less affected by measurement error and life-cycle bias compared with other standard m...

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Main Authors:	Emran, M. Shahe, Shilpi, Forhad
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	RANK CORRELATION DOWNWARD BIAS INTERGENERATIONAL MOBILITY EDUCATIONAL ATTAINMENT LIFETIME EARNINGS OCCUPATIONAL MOBILITY SOCIAL MOBILITY REGRESSION
Online Access:	http://documents.worldbank.org/curated/en/503481524073263573/Estimating-intergenerational-mobility-with-incomplete-data-coresidency-and-truncation-bias-in-rank-based-relative-and-absolute-mobility-measures http://hdl.handle.net/10986/29716

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spelling	okr-10986-297162021-06-08T14:42:45Z Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures Emran, M. Shahe Shilpi, Forhad RANK CORRELATION DOWNWARD BIAS INTERGENERATIONAL MOBILITY EDUCATIONAL ATTAINMENT LIFETIME EARNINGS OCCUPATIONAL MOBILITY SOCIAL MOBILITY REGRESSION The rank-based measures of intergenerational mobility have become increasingly popular in economics literature. Recent evidence shows that rank-based measures are less affected by measurement error and life-cycle bias compared with other standard measures such as intergenerational regression coefficient and intergenerational correlation. However, most of the available household surveys suffer from sample truncation, because coresidency is used to define household membership. There is no evidence on how sample truncation affects the rank-based mobility estimates relative to intergenerational regression coefficient and intergenerational correlation. This paper provides evidence on this in the context of intergenerational schooling persistence, using two exceptional surveys from India and Bangladesh that include all children irrespective of residency status. The analysis shows that the measures of relative mobility (slopes) are biased downward in coresident samples, but the average bias in rank correlation is less than half of that in intergenerational regression coefficient, and comparable to that in intergenerational correlation in magnitude. The intercept estimates are biased upward, with the largest bias found in the intercept of the regression used for intergenerational correlation. Truncation bias in rank-based absolute mobility estimates is the lowest in most cases. The results strengthen the case for rank-based measures of intergenerational mobility when working with the standard household surveys. 2018-04-20T17:24:57Z 2018-04-20T17:24:57Z 2018-04 Working Paper http://documents.worldbank.org/curated/en/503481524073263573/Estimating-intergenerational-mobility-with-incomplete-data-coresidency-and-truncation-bias-in-rank-based-relative-and-absolute-mobility-measures http://hdl.handle.net/10986/29716 English Policy Research Working Paper;No. 8414 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	RANK CORRELATION DOWNWARD BIAS INTERGENERATIONAL MOBILITY EDUCATIONAL ATTAINMENT LIFETIME EARNINGS OCCUPATIONAL MOBILITY SOCIAL MOBILITY REGRESSION
spellingShingle	RANK CORRELATION DOWNWARD BIAS INTERGENERATIONAL MOBILITY EDUCATIONAL ATTAINMENT LIFETIME EARNINGS OCCUPATIONAL MOBILITY SOCIAL MOBILITY REGRESSION Emran, M. Shahe Shilpi, Forhad Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
geographic_facet	South Asia Bangladesh India
relation	Policy Research Working Paper;No. 8414
description	The rank-based measures of intergenerational mobility have become increasingly popular in economics literature. Recent evidence shows that rank-based measures are less affected by measurement error and life-cycle bias compared with other standard measures such as intergenerational regression coefficient and intergenerational correlation. However, most of the available household surveys suffer from sample truncation, because coresidency is used to define household membership. There is no evidence on how sample truncation affects the rank-based mobility estimates relative to intergenerational regression coefficient and intergenerational correlation. This paper provides evidence on this in the context of intergenerational schooling persistence, using two exceptional surveys from India and Bangladesh that include all children irrespective of residency status. The analysis shows that the measures of relative mobility (slopes) are biased downward in coresident samples, but the average bias in rank correlation is less than half of that in intergenerational regression coefficient, and comparable to that in intergenerational correlation in magnitude. The intercept estimates are biased upward, with the largest bias found in the intercept of the regression used for intergenerational correlation. Truncation bias in rank-based absolute mobility estimates is the lowest in most cases. The results strengthen the case for rank-based measures of intergenerational mobility when working with the standard household surveys.
format	Working Paper
author	Emran, M. Shahe Shilpi, Forhad
author_facet	Emran, M. Shahe Shilpi, Forhad
author_sort	Emran, M. Shahe
title	Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
title_short	Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
title_full	Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
title_fullStr	Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
title_full_unstemmed	Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
title_sort	estimating intergenerational mobility with incomplete data : coresidency and truncation bias in rank-based relative and absolute mobility measures
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/503481524073263573/Estimating-intergenerational-mobility-with-incomplete-data-coresidency-and-truncation-bias-in-rank-based-relative-and-absolute-mobility-measures http://hdl.handle.net/10986/29716
_version_	1764470075943813120

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

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