Business
Business, 26.11.2019 23:31, bandzlvr

In chetty's paper, find the expected rank in the income distribution 30 years from now of the children of nhw parents currently at the median of the income distribution. do the same for african americans, hispanics, asians, and native americans.

the authors estimate ,
y = alpha r + beta r + e
where alpha r measures the absolute rank mobility for children of the lowest income parents and beta r measures the rate of relative mobility.

suppose that each t represents a discrete generation (approximated by 30-year periods).

our objective is to find y = alpha r + (beta r)*(yi)

where yi = 50 and (alpha r, beta r ) for each race
r are obtained from figure iii-a.

r alpha r beta r y

nhw's 36.82 .32 52.82
blacks 25.43 .28 39.43
asians 51.44 .18 60.44
hispanics 36.14 .26 49.14
amer in 25.16 .31 40.66

how about the expected rank 60 years from now (i. e., of their grandchildren)?

answer
Answers: 3

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