Summary
We consider the problem of estimating the intergenerational orrelation of in omes in the ontext of a panel data framework with measurement errors. We present single equation estimation metho ds as well as system metho ds under various assumptions regarding the serial orrelation of the error term and taking into a ount p ossible orrelations among hildren of the same family. Appli ation to a sample of US parents and hildren leads to estimates of the order of 0.42 to 0.60 for the o eÆ ient of in ome transmission.