Measurement and Cross-Country Differences

Measurement and Cross-Country Differences

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Unformatted text preview: se in Card, DiNardo, and Estes (2000) and intended to facilitate a Canada-U.S. comparison. The use of annual earnings as the outcome in row 5 is intended to facilitate comparisons to existing studies of generational mobility among the general Canadian population. Source: Aydemic, Chen and Corak (2009) 388 THE REVIEW OF ECONOMICS AND STATISTICS FIGURE 1.—SCATTER PLOT OF GROUPED DATA OF WEEKLY EARNINGS FOR FATHERS AND SONS 7.0 Mean log Wage, 2nd Generation Sons TANZANIA EGYPT TAIWAN SYRIA 6.8 MOROCCO NEW ZEALAND IRAN/IRAQ SRI LANKA NORWAY TURKEY --ROMANIA FRANCE -UGANDA OTHER N AFRICA S AFRICA OTHER E ASIA CHINA UK OTHER W ASIA ECUADOR IRELAND OTHER C AMERICA LEBANON 6.6 S. LUCIA \ \ COLOMBIA W AFRICA GREECE | CANADA FINLAND AUSTRALIA SWEDEN FIJI 6.4 OTHER CARIBBEANS HAITI JAMAICA OTHER E/C AFRICA GRENADA 6.2 6.2 6.4 6.6 6.8 7.0 7.2 Mean log Wage, Immigrant Fathers Notes: Sample selection rules are those described in row 3 of table 7. The weighted least squares regression line is depicted and has a slope of 0.267. Dotted lines represent the average log weekly earnings of fathers and sons. Not all points are labeled. See appendix table A1 for details. An observation for Canadian-born children of Canadian-born fathers is included for reference but not used in the regression. estimate of the slope falls from 0.267 to 0.224, a difference of less than one standard error. Finally, row 5 reports the estimation results when the outcome of interest is defined to be the natural logarithm of annual rather than weekly earnings. This is the outcome used in much of the existing Canadian literature on generational earnings mobility, as for example in Corak and Heisz (1999) and Grawe (2004a, 2004b), and as reported in table 1. The resulting estimate at 0.176 is almost exactly in line with these results. In sum, the major conclusions from this table are (i) that the best estimate of the generational elasticity in father-son weekly earnings is 0.27; (ii) that the generational elasticity among the immigrant population in Canada is no different than for the population at large; and (iii) that...
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This document was uploaded on 02/26/2014 for the course ECON 560 at The University of British Columbia.

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