Recent Developments in Intergenerational Mobility

Economists and social scientists have long been interested in intergenerational mobility, and documenting the persistence between parents and children's outcomes has been an active area of research. However, since Gary Solon's 1999 Chapter in the Handbook of Labor Economics, the literature has taken an interesting turn. In addition to focusing on obtaining precise estimates of correlations and elasticities, the literature has placed increased emphasis on the causal mechanisms that underlie this relationship. This chapter describes the developments in the intergenerational transmission literature since the 1999 Handbook Chapter. While there have been some important contributions in terms of measurement of elasticities and correlations, we will focus primarily on advances in our understanding of the forces driving the relationship and less on the precision of the correlations themselves.income transmission, income mobility, education, intergenerational transmission

Recent Developments in Intergenerational Mobility

Economists and social scientists have long been interested in intergenerational mobility, and documenting the persistence between parents and children's outcomes has been an active area of research. However, since Gary Solon's 1999 Chapter in the Handbook of Labor Economics, the literature has taken an interesting turn. In addition to focusing on obtaining precise estimates of correlations and elasticities, the literature has placed increased emphasis on the causal mechanisms that underlie this relationship. This chapter describes the developments in the intergenerational transmission literature since the 1999 Handbook Chapter. While there have been some important contributions in terms of measurement of elasticities and correlations, we will focus primarily on advances in our understanding of the forces driving the relationship and less on the precision of the correlations themselves.Intergenerational Transmission, Educational Mobility

The linear bias of radio galaxies at z~0.3 via cosmic microwave background lensing

© 2019 The Author(s) Published by Oxford University Press on behalf of the Royal Astronomical SocietyWe present a new measurement of the linear bias of radio loud active galactic nuclei (RLAGN) at $z\approx0.3$ and $L_{\rm 1.4GHz}>10^{23}\,{\rm W\,Hz^{-1}}$ selected from the Best & Heckman (2012) sample, made by cross-correlating the RLAGN surface density with a map of the convergence of the weak lensing field of the cosmic microwave background from Planck. We detect the cross-power signal at a significance of $3\sigma$ and use the amplitude of the cross-power spectrum to estimate the linear bias of RLAGN, $b=2.5 \pm 0.8$, corresponding to a typical dark matter halo mass of $\log_{10}(M_{\rm h} /h^{-1} M_\odot)=14.0^{+0.3}_{-0.5}$. When RLAGN associated with optically-selected clusters are removed we measure a lower bias corresponding to $\log_{10}(M_{\rm h} /h^{-1} M_\odot)=13.7^{+0.4}_{-1.0}$. These observations support the view that powerful RLAGN typically inhabit rich group and cluster environments.Peer reviewe

From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes

Lower birth weight babies have worse outcomes, both short-run in terms of one year mortality rates and longer run in terms of educational attainment and earnings.However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure haracteristics. By applying within twin techniques using a unique dataset from Norway, we xamine both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; very small short-run fixed effect estimates can be misleading because longer-run effects on outcomes such as height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates. Our estimates suggest that eliminating birth weight differences between socio-economic groups would have sizeable effects on the later outcomes of children from poorer families.Labour Market Outcomes, Educational Attainment, Birth Weight

From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes

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Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance

This paper develops a model of endogenous exchange rate pass-through within an open economy macroeconomic framework, where both passthrough and the exchange rate are simultaneously determined, and interact with one another. Pass-through is endogenous because firms choose the currency in which they set their export prices. There is a unique equilibrium rate of pass-through under the condition that exchange rate volatility rises as the degree of pass-through falls. We show that the relationship between exchange rate volatility and economic structure may be substantially affected by the presence of endogenous pass-through. Our key results show that pass-through is related to the relative stability of monetary policy. Countries with relatively low volatility of money growth will have relatively low rates of exchange rate pass-through, while countries with relatively high volatility of money growth will have relatively high pass-through rates.

Under Pressure? The Effect of Peers on Outcomes of Young Adults

A variety of public campaigns, including the "Just Say No" campaign of the 1980s and 1990s that encouraged teenagers to "Just Say No to Drugs", are based on the premise that teenagers are very susceptible to peer influences. Despite this, very little is known about the effect of school peers on the long-run outcomes of teenagers. This is primarily due to two factors: the absence of information on peers merged with long-run outcomes of individuals and, equally important, the difficulty of separately identifying the role of peers. This paper uses data on the population of Norway and idiosyncratic variation in cohort composition within schools to examine the role of peer composition in 9th grade on longer-run outcomes such as IQ scores at age 18, teenage childbearing, post-compulsory schooling educational track, adult labor market status, and earnings. We find that outcomes are influenced by the proportion of females in the grade, and these effects differ for men and women. Other peer variables (average age, average mother's education) have little impact on the outcomes of teenagers.education, peer effects

From the Cradle to the Labor Market? The Effect of Birth Weight on Adult Outcomes

Lower birth weight babies have worse outcomes, both short-run in terms of one-year mortality rates and longer run in terms of educational attainment and earnings. However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure characteristics. By applying within twin techniques using a unique dataset from Norway, we examine both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; very small short-run fixed effect estimates can be misleading because longer-run effects on outcomes such as height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates. Our estimates suggest that eliminating birth weight differences between socio-economic groups would have sizeable effects on the later outcomes of children from poorer families.

Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance

This paper develops a model of endogenous exchange rate pass through within an open economy macroeconomic framework, where both pass-through and the exchange rate are simultaneously determined, and interact with one another. Pass-through is endogenous because firms choose the currency in which they set their export prices. There is a unique equilibrium rate of pass-through under the condition that exchange rate volatility rises as the degree of pass-through falls. We show that the relationship between exchange rate volatility and economic structure may be substantially affected by the presence of endogenous pass-through. Our key results show that pass-through is related to the relative stability of monetary policy. Countries with relatively low volatility of money growth will have relatively low rates of exchange rate pass-through, while countries with relatively high volatility of money growth will have relatively high pass-through rates.