Unformatted text preview: this elasticity is lower,
possibly about 50% lower, than in the United States.
Table 8 offers the least squares results for the fatherdaughter earnings relationship. All of the estimated elasticities
are not statistically different from 0, though the point estimates
suggest a very weak negative correlation. This is in contrast
with both the existing Canadian literature for the population at
large and the ﬁndings of Card, DiNardo, and Estes (2000). Two
Canadian-based studies examine the generational mobility of
daughters, focusing on annual earnings. Fortin and Lefebvre
(1998, table 4.3) use a similar estimator with Census data that
is based upon averages of occupational earnings to suggest that
in 1994 the father-daughter elasticity is in the neighborhood of
0.22; though one of their estimates is as low as 0.14, it remains
statistically signiﬁcant. Corak (2001, table 1) uses administra- tive data that directly link fathers with their children and
reports a father-daughter earnings elasticity of 0.20. Card,
DiNardo, and Estes (2000, table 6.7) report 0.21 for U.S.
immigrants using their 1940–1970 sample, and 0.50 for their
1970–1995 sample. The latter result is not signiﬁcantly different from the 0.62 reported for fathers and sons.
Figures 1 and 2 are scatter plots of the seventy data points
and the estimated regression lines from row 3 of tables 7 and
8. The regression line is estimated with weighted least squares.
In order to draw further insights we identify any particularly
inﬂuential data points by successively dropping a single observation from the regression and reestimating equation (1) with
the remaining 69 observations. We do this for each observation
and obtain 69 separate estimates of , which are plotted in
ﬁgure 3 for sons and ﬁgure 4 for daughters. The results are
always within one standard error of the preferred estimates in
row 3 of tables 7 and 8 based on all seventy observations. This
exercise highlights that sons of fathers from China and the
United Kingdom have a noticeable impact on the point estima...
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- Fall '13
- Economics, Household income in the United States, IgE