When Measure Matters: Coresidency, Truncation Bias, and Intergenerational Mobility in Developing Countries

43 Pages Posted: 20 Apr 2016

See all articles by M. Shahe Emran

M. Shahe Emran

George Washington University - Department of Economics

William H. Greene

New York University Stern School of Business

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Date Written: March 18, 2016

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.

Keywords: Poverty Impact Evaluation, Educational Sciences, Poverty Assessment, Poverty Diagnostics, Poverty Monitoring & Analysis, Poverty Lines, Small Area Estimation Poverty Mapping

Suggested Citation

Emran, M. Shahe and Greene, William H. and Shilpi, Forhad, When Measure Matters: Coresidency, Truncation Bias, and Intergenerational Mobility in Developing Countries (March 18, 2016). World Bank Policy Research Working Paper No. 7608. Available at SSRN: https://ssrn.com/abstract=2750204

M. Shahe Emran (Contact Author)

George Washington University - Department of Economics ( email )

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William H. Greene

New York University Stern School of Business ( email )

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HOME PAGE: http://people.stern.nyu.edu/wgreene

Forhad Shilpi

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
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Washington, DC 20433
United States
202-458-7476 (Phone)
202-522-1151 (Fax)

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