Intergenerational Earnings Persistence in Italy between Actual Father–Son Pairs Accounting for Lifecycle and Attenuation Bias
| Autor: | Francesco Bloise, Michele Raitano |
|---|---|
| Přispěvatelé: | Bloise, F., Raitano, M. |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Statistics and Probability
Economics and Econometrics Inequality media_common.quotation_subject attenuation bias Earnings persistence Sample (statistics) intergenerational inequality 0502 economics and business Economics lifecycle bias 050207 economics intergenerational earnings elasticity Baseline (configuration management) 050205 econometrics media_common Forward regression Earnings 05 social sciences Young age Italy Survey data collection rank-rank slope Demographic economics Statistics Probability and Uncertainty Social Sciences (miscellaneous) |
| Popis: | Using a longitudinal dataset built merging administrative and survey data, we contribute to the literature on intergenerational inequality providing the first estimate of the intergenerational earnings elasticity (IGE) in Italy based on actual father–son pairs, taking into account issues related to measurement biases and comparing the size of the lifecycle bias when sons are selected by age or by potential experience (i.e. the number of years since the end of their studies). Our findings confirm that Italy is a low‐mobility country. In our baseline estimate, when sons are observed 6 years after the end of their studies, the IGE is approximately 0.41 and is robust to various measures of fathers’ lifetime earnings. However, our results might be downward biased by the young age of sons. To measure the lifecycle bias and correct IGE estimates, we run the ‘forward regression’ of yearly earnings on lifetime earnings on a sample of workers followed for 30 years. We find that selecting sons by potential experience rather than by age reduces the lifecycle bias at young ages and the ‘corrected’ IGE is 0.48. The picture of Italy as a low‐mobility country is also confirmed when we measure the intergenerational association through the rank–rank slope. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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