Measurement and Cross-Country Differences

Darker areas represent more progressive tax

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Unformatted text preview: Income Statistics (2008). 22 Source: Chetty, Henren, Kline and Saez (2013) FIGURE 3 Intergenerational Mobility (Parent-Rank and Child-Rank Income Correlation) Notes: This figure maps CZ coefficients from OLS regressions of adult children’s income rank on their parents’ income rank, with rank defined by income centiles within each CZ. Darker areas represent lower intergenerational mobility. See Section 2.2 for details on the construction of local IGE measures. 23 Source: Chetty, Henren, Kline and Saez (2013) TABLE 5 Tax and other Correlations with Intergenerational Mobility E[Child Dep. Var.: Rank|Parent=p25] (1) (2) Local Expenditure State Tax State EITC Rate Student Expenditure High-school Dropout Rate Score College Return College Tuition Colleges per capita Inc. at p75 - Inc. at p25 Share of Income of Top 1% Share Black Black Isolation Segregation of Poverty Migration Inflow Share Foreign Born Migration Outflow Mean Household Income Income Growth Rate Share Manufacturing Trade Shock Social Capital Index Religiosity Crime Rate Share Single Moms Share Single Moms (kids of married) Divorce Rate Teen birth Rate 0.215 0.199 0.231 0.251 -0.639 0.557 -0.276 -0.003 0.102 -0.475 0.178 -0.605 -0.513 -0.405 -0.184 -0.016 -0.098 0.109 0.561 -0.260 -0.274 0.617 0.510 -0.326 -0.763 -0.652 -0.688 -0.550 (0.076) (0.141) (0.109) (0.094) (0.064) (0.086) (0.137) (0.060) (0.042) (0.089) (0.068) (0.065) (0.065) (0.063) (0.075) (0.060) (0.069) (0.075) (0.066) (0.081) (0.124) (0.091) (0.087) (0.101) (0.078) (0.094) (0.108) (0.091) Notes: The dependent variable is the fitted value (with parent rank at 25) of a within-CZ OLS regression of 100-bin parent income rank and 100-bin child income rank in 2011. Each row reports estimates from an OLS regression against the variable in the left-most column. Column 1 reports the slope coeffic ients and Column 2 reports standard errors that are clustered at the state level. We standardize our dependent variable (the fitted value) and all right-hand-side variables to have mean 0 and variance 1. 18 Fortin – Econ 560 Lecture 5B Among various categories of local expenditures, they find significant positive correlations between state EITC policy and intergenerational mobility. Fortin – Econ 560 Lecture 5B Basic readings: Solon, G. “Intergenerational Mobility in the Labor Market,” in O. Ashenfelter and D. Card, eds., Handbook of Labor Economics, vol. 3A, North-Holland, 1999, 1761-1800. Solon, G. “Cross-Country Differences in Intergenerational Earnings Mobility,” Journal of Economic Perspectives, Vol. 16 (Summer 2002), 59-66. Aydemir, A., W.H. Chen, M. Corak “Intergenerational earnings mobility among the children of Canadian immigrants”, Review of Economics and Statistics, Vol. 91(May 2009): 377-397...
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This document was uploaded on 02/26/2014 for the course ECON 560 at UBC.

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