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Sources of measurement errors in earnings data : new estimates of intergenerational elasticities

Nilsen, Øivind Anti; Vaage, Kjell; Aakvik, Arild; Jacobsen, Karl Åge
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URI
http://hdl.handle.net/11250/163192
Date
2008-04
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  • Discussion papers (SAM) [586]
Abstract
Using Norwegian intergenerational data with a substantial part of the life-cycle earnings of children and almost the entire life-cycle earnings for their fathers, we present new estimates of intergenerational mobility. Extending the length of the fathers’ earnings windows from 5 to 30 years increases the estimated elasticities. Varying the age of father at observation has the opposite effect. Our findings indicate that intergenerational earnings mobility may have been strongly overstated in many earlier studies with shorter earnings histories. Biases in the

estimated elasticities appear to be related to age and/or life-cycle measurement errors more than persistency in the transitory innovations.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2008:8

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