. Christiansen -- Schooling, intelligence, and income in America / Orley Ashenfelter and Cecilia Rouse -- Does schooling raise …

This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing … measurement error or transitory income shocks and an AR(1) component representing persistent changes in income. We use a tractable …

We examine how intergenerational income mobility responds to structural changes in a simple theoretical model of …

literature. We show with theory and simulations that even using a 30-year income average can result in a small positive spurious …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 …

in income inequality. An alternative is to assess patterns of panel income changes. We derive theoretical conditions … reconciling changes in inequality together with various measures of convergent/divergent panel income changes. For a large number … income changes in shares or in proportions; and we establish a condition linking convergence/divergence in dollars to changes …