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  3. American Economic Review
  4. May 2016
  5. Fixed Effects, Invariance, and Spatial Variation in Intergenerational Mobility

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Fixed Effects, Invariance, and Spatial Variation in Intergenerational Mobility

  • Gary Chamberlain
American Economic Review
vol. 106, no. 5, May 2016
(pp. 400–404)
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Abstract

Chetty et al. (2014) document variation across commuting zones in intergenerational mobility. With over 700 commuting zones, the task of estimating place effects involves a high-dimension parameter space. I develop a fixed-effects model along with an oracle bound on the risk of invariant estimators. The oracle estimator uses an invariant prior, which I have incorporated into a random-effects model to obtain a feasible estimator. This estimator almost achieves the oracle bound over the relevant part of the (fixed-effects) parameter space in the empirical application. There is substantial reduction in risk compared with the least-squares estimator.

Citation

Chamberlain, Gary. 2016. "Fixed Effects, Invariance, and Spatial Variation in Intergenerational Mobility." American Economic Review, 106 (5): 400–404. DOI: 10.1257/aer.p20161082

Additional Materials

JEL Classification

  • C23 Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
  • J62 Job, Occupational, and Intergenerational Mobility; Promotion