EconBase
← All papers

Conditional Rank-Rank Regression

Victor Chernozhukov, Iván Fernández-Val, Jonas Meier, Aico van Vuuren, Francis Vella

arXiv 8 Jul 2024 · Econometrics · 3 citations (OpenAlex)

arXiv:2407.06387 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Rank-rank regression is commonly employed in economic research as a way of capturing the relationship between two economic variables. It frequently features in studies of intergenerational mobility as the resulting coefficient, capturing the rank correlation between the variables, is easy to interpret and measures overall persistence. However, in many applications it is common practice to include other covariates to account for differences in persistence levels between groups defined by the values of these covariates. In these instances the resulting coefficients can be difficult to interpret. We propose the conditional rank-rank regression, which uses conditional ranks instead of unconditional ranks, to measure average within-group persistence. The difference between conditional and unconditional rank-rank regression coefficients can then be interpreted as a measure of between-group persistence. We develop a flexible estimation approach using distribution regression and establish a theoretical framework for large sample inference. An empirical study on intergenerational income mobility in Switzerland demonstrates the advantages of this approach. The study reveals stronger intergenerational persistence between fathers and sons compared to fathers and daughters, with the within-group persistence explaining 62% of the overall income persistence for sons and 52% for daughters. Smaller families and those with highly educated fathers exhibit greater persistence in economic status.

Citation extraction

37
references
72
in-text mentions
37
distinct cited
4
self-citations
15,961
main-text words

appendix boundary found by appendix_command · 68% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Ren, J.-J. and P. K. Sen (1995) Hadamard differentiability on D [0, 1] p0.87492100%
2Liu, Q., C. Li, V. Wanga, and B. E. Shepherd (2018) Covariate-adjusted Spearman's rank correlation with probability-scale residuals0.87452100%
3Abramitzky, R., L. Boustan, E. Jácome, and S. Pérez (2021) Intergenerational mobility of immigrants in the United States over two centuries0.84333100%
4Chetty, R., N. Hendren, P. Kline, and E. Saez (2014) Where is the land of opportunity? The geography of intergenerational mobility in the United States0.84333100%
5Hoeffding, W (1948) A Class of Statistics with Asymptotically Normal Distribution0.73732100%
6van der Vaart, A. W., J. A. Wellner, A. W. van der Vaart, and J. A.… (1996) Weak convergence0.73732100%
7Chernozhukov, V., I. Fernández-Val, and B. Melly (2013) Inference on Counterfactual Distributions self0.66910330%
8Chetverikov, D. and D. Wilhelm (2023) Inference for rank-rank regressions0.64441100%
9Cramér, H (1999) Mathematical methods of statistics0.5112250%
10Chetverikov, D. and D. Wilhelm (2025) Inference for Rank-Rank Regressions0.51121100%

Showing the top 10 of 37 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Bivariate distribution regression; theory, estimation and an application to intergenerational mobility0.40511
2Distributional Effects in Censored Quantile Regressions with Endogeneity and Heteroskedasticity0.40511