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Title: Status Traps
Resulting in 1 citation.
1. Durlauf, Steven
Kourtellos, Andros
Tan, Chih Ming
Status Traps
Journal of Business and Economic Statistics 35,2 (2017): 265-287.
Also: http://www.tandfonline.com/doi/abs/10.1080/07350015.2016.1189339
Cohort(s): Children of the NLSY79, NLSY79, NLSY79 Young Adult
Publisher: American Statistical Association
Keyword(s): Earnings; Intergenerational Patterns/Transmission; Mobility, Economic; Panel Study of Income Dynamics (PSID); Peabody Individual Achievement Test (PIAT- Math); Peabody Picture Vocabulary Test (PPVT); Pearlin Mastery Scale; Personality/Big Five Factor Model or Traits; Personality/Ten-Item Personality Inventory-(TIPI); Poverty; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem)

In this paper, we explore nonlinearities in the intergenerational mobility process using threshold regression models. We uncover evidence of threshold effects in children's outcomes based on parental education and cognitive and non-cognitive skills as well as their interaction with offspring characteristics. We interpret these thresholds as organizing dynastic earnings processes into "status traps". Status traps, unlike poverty traps, are not absorbing states. Rather, they reduce the impact of favorable shocks for disadvantaged children and so inhibit upward mobility in ways not captured by linear models. Our evidence of status traps is based on three complementary datasets; i.e., the PSID, the NLSY, and US administrative data at the commuting zone level, which together suggest that the threshold-like mobility behavior we observe in the data is robust for a range of outcomes and contexts.
Bibliography Citation
Durlauf, Steven, Andros Kourtellos and Chih Ming Tan. "Status Traps." Journal of Business and Economic Statistics 35,2 (2017): 265-287.