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Relative Mobility Method: Rank-Rank Slope

An alternative method for calculating relative mobility, inspired by Dahl and DeLeire (2008) and first used by Chetty et al. (2014). Let RiR_i denote child ii's percentile rank in the income distribution of children, and PiP_i denote parent ii's percentile rank in the income distribution of parents. Regressing the child's rank RiR_i on the parent's rank PiP_i yields a regression coefficient ρPR=Corr(Pi,Ri)\rho_{PR} = Corr(P_i, R_i), called the rank-rank slope. The rank-rank slope ρPR\rho_{PR} measures the association between a child's position in the income distribution and their parents' position in the distribution. Compared against the intergenerational elasticity of income, the rank-rank slope method has been noted for being more statistically robust.

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Updated 2026-07-09

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