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Measuring Absolute Income Mobility: Lessons from North America and Europet
Univ Michigan, Dept Sociol, Ann Arbor, MI 48109 USA..
Stanford Univ, Dept Sociol, Stanford, CA USA..
Uppsala University, Units outside the University, The Institute for Evaluation of Labour Market and Education Policy (IFAU).ORCID iD: 0000-0002-7062-4308
Univ Surrey, Sch Econ, Guildford, England..
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2024 (English)In: American Economic Journal: Applied Economics, ISSN 1945-7782, E-ISSN 1945-7790, Vol. 16, no 2, p. 1-30Article in journal (Refereed) Published
Abstract [en]

We use linked parent-child administrative data for five countries in North America and Europe, as well as detailed survey data for two more, to investigate methodological challenges in the estimation of absolute income mobility. We show that the commonly used "copula and marginals" approximation methods perform well across countries in our sample, and the greatest challenges to their accuracy stem not from assumptions about relative mobility rates over time but from the use of nonrepresentative marginal income distributions. We also provide a multicountry analysis of sensitivity to specification decisions related to age of income measurement, income concept, family structure, and price index. (JEL D31, G51, I31, J12, J31, J62)

Place, publisher, year, edition, pages
American Economic Association , 2024. Vol. 16, no 2, p. 1-30
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Economics
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URN: urn:nbn:se:uu:diva-533100DOI: 10.1257/app.20210137ISI: 001237947900001OAI: oai:DiVA.org:uu-533100DiVA, id: diva2:1877160
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EU, European Research CouncilAvailable from: 2024-06-25 Created: 2024-06-25 Last updated: 2024-06-25Bibliographically approved

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Adermon, AdrianGielen, Anne C.Nybom, Martin
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