Intergenerational mobility measures in a bivariate normal model

TL;DR

This paper develops a bivariate normal model to analytically derive and relate intergenerational mobility measures based on joint log-income distributions of parents and children.

Contribution

It introduces a novel analytical framework linking relative and absolute mobility measures within a bivariate normal model.

Findings

Both mobility measures can be expressed as functions of each other.

Analytic expressions for mobility measures are derived.

The model provides insights into intergenerational income mobility relationships.

Abstract

We model the joint log-income distribution of parents and children and derive analytic expressions for canonical relative and absolute intergenerational mobility measures. We find that both types of mobility measures can be expressed as a function of the other.