Reconsidering the Use of Nonlinearities in Intergenerational Earnings Mobility as a Test for Credit Constraints.

Intergenerational earnings regression among Canadian men is nonlinear; middle-earning families experience slower regression. This pattern appears to confirm economic models of educational choice with credit constraints. This paper reexamines the economic model and finds no connection between credit...

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Publicado en:Journal of Human Resources Vol. 39; no. 3; pp. 813 - 828
Autor principal: Grawe, Nathan D.
Formato: Artículo
Publicado: University of Wisconsin Press Summer2004
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Reconsidering the Use of Nonlinearities in Intergenerational Earnings Mobility as a Test for Credit Constraints.
      aug:
        au: Grawe, Nathan D.
      su:
        Education & economics
        Credit
        Mathematical finance
        Intergenerational relations
        Economics
        Wages
        Canada
      sug:
        subj:
          Canada
          Education & economics
          Credit
          Mathematical finance
          Intergenerational relations
          Economics
          Wages
      ab: Intergenerational earnings regression among Canadian men is nonlinear; middle-earning families experience slower regression. This pattern appears to confirm economic models of educational choice with credit constraints. This paper reexamines the economic model and finds no connection between credit markets and earnings regression nonlinearities. In particular, credit constraints need not produce concavity and concavity does not imply credit market failure. Despite the invalidity of the test, data availability will likely lead to continued research along this path. The paper proposes an amended test using quantile regressions. Applied to Canadian data, the simple liquidity constraint conclusion is rejected. Reprinted by permission of the publisher.
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    language: English
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