nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2022‒08‒08
three papers chosen by
Maximo Rossi
Universidad de la República

  1. Finite mixture models for linked survey and administrative data By Stephen P. Jenkins; Fernando Rios-Avila
  2. The role of unobservable characteristics in friendship network formation By Pablo Bra\~nas-Garza; Lorenzo Ductor; Jarom\'ir Kov\'ar\'ik
  3. Intergenerational mobility in education in Latin America By Neidhöfer, Guido; Ciaschi, Matías; Gasparini, Leonardo

  1. By: Stephen P. Jenkins (LSE); Fernando Rios-Avila (Bard College)
    Abstract: Researchers use finite mixture models to analyze linked survey and administrative data on labor earnings (or similar variables), taking account of various types of measurement error in each data source. Different combinations of error-ridden and error-free observations characterize latent classes. Latent class probabilities depend on the probabilities of the different types of error. We introduce a set of Stata commands to fit a general class of finite mixture models to fit to linked survey-administrative data. We also provide postestimation commands for assessment of reliability, marginal effects, data simulation, and prediction of hybrid earnings variables that combine information from both data sources.
    Date: 2022–06–10
  2. By: Pablo Bra\~nas-Garza; Lorenzo Ductor; Jarom\'ir Kov\'ar\'ik
    Abstract: Inbreeding homophily is a prevalent feature of human social networks with important individual and group-level social, economic, and health consequences. The literature has proposed an overwhelming number of dimensions along which human relationships might sort, without proposing a unified empirically-grounded framework for their categorization. We exploit rich data on a sample of University freshmen with very similar characteristic - age, race and education- and contrast the relative importance of observable vs. unobservables characteristics in their friendship formation. We employ Bayesian Model Averaging, a methodology explicitly designed to target model uncertainty and to assess the robustness of each candidate attribute while predicting friendships. We show that, while observable features such as assignment of students to sections, gender, and smoking are robust key determinants of whether two individuals befriend each other, unobservable attributes, such as personality, cognitive abilities, economic preferences, or socio-economic aspects, are largely sensible to the model specification, and are not important predictors of friendships.
    Date: 2022–06
  3. By: Neidhöfer, Guido; Ciaschi, Matías; Gasparini, Leonardo
    Abstract: This document provides a comprehensive analysis of intergenerational mobility in Latin America, focusing on the association between parental education and the education of their children. It updates the estimates provided by Neidhöfer et al. (2018), and shows additional heterogeneities by country, cohort, gender, and city size. A positive trend in intergenerational mobility is found in most countries in the region. In particular, it is observed that the upward mobility of children from the bottom of the distribution has been increasing for decades. This encouraging picture is seriously challenged by the educational disruptions caused by the COVID-19 pandemic.
    Keywords: Desarrollo, Educación, Familia, Género, Investigación socioeconómica, Niñez, Políticas públicas,
    Date: 2021

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