Modalsli, Jørgen Heibø; Vosters, Kelly - 2019
Intergenerational persistence estimates are susceptible to several well-documented biases arising from income … measurement, and it has become standard practice to construct income measures to mitigate these. However, remaining bias can lead … literature. We show with theory and simulations that even using a 30-year income average can result in a small positive spurious …
