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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 denote child 's percentile rank in the income distribution of children, and denote parent 's percentile rank in the income distribution of parents. Regressing the child's rank on the parent's rank yields a regression coefficient , called the rank-rank slope. The rank-rank slope 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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The Economy 2.0 Macroeconomics @ CORE Econ