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When Measure Matters : Coresidency, Truncation Bias, and Intergenerational Mobility in Developing Countries
Authors: --- ---
Year: 2016 Publisher: Washington, D.C. : The World Bank,

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Abstract

Biases from truncation caused by coresidency restriction have been a challenge for research on intergenerational mobility. Estimates of intergenerational schooling persistence from two data sets show that the intergenerational regression coefficient, the most widely used measure, is severely biased downward in coresident samples. But the bias in intergenerational correlation is much smaller, and is less sensitive to the coresidency rate. The paper provides explanations for these results. Comparison of intergenerational mobility based on the intergenerational regression coefficient across countries, gender, and over time can be misleading. Much progress on intergenerational mobility in developing countries can be made with the available data by focusing on intergenerational correlation.


Book
Estimating Intergenerational Mobility with Incomplete Data : Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures
Authors: ---
Year: 2018 Publisher: Washington, D.C. : The World Bank,

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Abstract

The rank-based measures of intergenerational mobility have become increasingly popular in economics literature. Recent evidence shows that rank-based measures are less affected by measurement error and life-cycle bias compared with other standard measures such as intergenerational regression coefficient and intergenerational correlation. However, most of the available household surveys suffer from sample truncation, because coresidency is used to define household membership. There is no evidence on how sample truncation affects the rank-based mobility estimates relative to intergenerational regression coefficient and intergenerational correlation. This paper provides evidence on this in the context of intergenerational schooling persistence, using two exceptional surveys from India and Bangladesh that include all children irrespective of residency status. The analysis shows that the measures of relative mobility (slopes) are biased downward in coresident samples, but the average bias in rank correlation is less than half of that in intergenerational regression coefficient, and comparable to that in intergenerational correlation in magnitude. The intercept estimates are biased upward, with the largest bias found in the intercept of the regression used for intergenerational correlation. Truncation bias in rank-based absolute mobility estimates is the lowest in most cases. The results strengthen the case for rank-based measures of intergenerational mobility when working with the standard household surveys.

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