الصفحة الرئيسية > الإصدارات > Biases of the ordinary least squares and instrumental variables estimators of the intergenerational earnings elacticities: Revisited on the light of panel data

Biases of the ordinary least squares and instrumental variables estimators of the intergenerational earnings elacticities: Revisited on the light of panel data

Abul Naga, R. H.  (2008)

Journal of Economic Inequality. 6(4): 323-350

Summary

The OLS estimator of the intergenerational earnings correlation is biased towards zero, while the instrumental variables estimator is biased upwards. The first of these results arises because of measurement error, while the latter rests on the presumption that the education of the parent family is an invalid instrument. We propose a panel data framework for quantifying the asymptotic biases of these estimators, as well as a mis-specification test for the IV estimator.

Intergenerational mobility; Measurement error; Panel data; Biased estimation