effect having an opposite sign from the true effect. We present an expression for the asymptotic bias of both OLS and IV … estimators and discuss the conditions under which sign reversal may occur. We provide a method for eliminating this bias when …

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 … grandfather coefficient estimate. We further propose an IV approach, showing that it is not susceptible to this spillover bias in …