Partial Identification of Economic Mobility: With an Application to the United States

Abstract

The economic mobility of individuals and households is of fundamental interest. While many measures of economic mobility exist, reliance on transition matrices remains pervasive due to simplicity and ease of interpretation. However, estimation of transition matrices is complicated by the well-acknowledged problem of measurement error in self-reported and even administrative data. Existing methods of addressing measurement error are complex, rely on numerous strong assumptions, and often require data from more than two periods. In this article, we investigate what can be learned about economic mobility as measured via transition matrices while formally accounting for measurement error in a reasonably transparent manner. To do so, we develop a nonparametric partial identification approach to bound transition probabilities under various assumptions on the measurement error and mobility processes. This approach is applied to panel data from the United States to explore short-run mobility before and after the Great Recession.     

External knowledge search,absorptive capacity and radical innovation in high-technology firms

Open innovation and absorptive capacity are two concepts based on the idea that companies can leverage the knowledge generated externally to improve their innovation performance. The aim of this paper is to analyse the joint effect of open innovation and absorptive capacity on a firm's radical innovation. Open innovation is expressed in terms of external search breadth and depth strategies and absorptive capacity is described by distinguishing between potential and realized absorptive capacity. In order to test our hypotheses, we carried out empirical research in firms operating in high-technology industries. The results indicate that internal routines and processes for absorbing external knowledge help explain radical innovation as they show a significant effect of potential and realized absorptive capacity. Also, there is a moderating effect of absorptive capacity on open innovation. Specifically, potential absorptive capacity exerts a positive effect on the relationship between external search breadth and depth and radical innovation. Realized absorptive capacity moderates the influence of external search breadth. These findings confirm the complementary nature of absorptive capacity and open innovation search strategies on radical innovation.     

Applying kaizen to the schedule in a concurrent environment

Not only ETO (Engineering to Order), but even serial production industry should know how to deal with projects and their schedule: plant commissioning, shutdown, introducing new products and similar circumstances should be managed with adequate planning and resource allocation techniques to create a schedule useful in decision making during the execution. The current complex reality, with evolving technologies and fierce pressure to reach the market as soon as possible, pushes the project managers to use more advanced techniques than waterfall planning, such as agile or lean. It also requires them to take a holistic view and manage concurrent tasks in complex projects. The contributions of this paper are two: the proposal to control specific parallel groups of waterfall activities under uncertain environments, which can lead to iterations and reworks, as a single concurrent Activity Managed by Kanban Methods (AMKM). This activity can be subsequently embedded into traditional scheduling approaches as CPM-PERT. The second contribution is the feasibility of its application in industrial environments due to the affordability of simulation software. Two use cases are shown as evidence. It is not a disruptive proposal, but a kaizen action based on very mature technologies. Finally, it is suggested some improvements to be implemented in Project Management Software due to this ‘kaizen’ proposal.     

Decision-making: from neuroscience to neuroeconomics—an overview

Theory and Decision -     

Book Review: Restless Nation: Starting Over in America. By James M. Jasper. Chicago: University of Chicago Press, 2000. 296 pages,hardcover, ISBN: 0-226-39478-6

Qualitative Sociology -     

Nichts genaues weiss man nicht!?

What do voters really know about party platforms and how do they perceive the contents? Are there any relationships between party election platforms and electoral behavior? Despite of much research on parties, there are hardly any answers to these questions. If political parties devise programmes in order to influence political attitudes or electoral behavior, it will be necessary that these programmes are read by people. But it seems to be unclear if and how people do so. This article shows clearly that voters don’t know much about party manifestoes. Still, programmes are more important for voters than many people believe. Programmes are also an important factor for electoral behavior. But there is still a lack of data to get evident results.     

The Relationship Between Sense of Coherence and Career Thoughts

The authors examined the impact of sense of coherence on the career thought processes of a sample of college students. A. Antonovsky (1987) defined sense of coherence as the global orientation that the world is comprehensible, manageable, and meaningful. Study participants completed the Sense of Coherence Scale (A. Antonovsky, 1987) and the Career Thoughts Inventory (CTI; J. P. Sampson, G. W. Peterson, J. G. Lenz, R. C. Reardon, & D. E. Saunders, 1996). Multivariate tests indicated a medium relationship between sense of coherence and CTI Total and subscale scores; sense of coherence accounted for 14% of the variance. Univariate tests also indicated a medium relationship between sense of coherence and each subscale.     

Family Ties and Peso Signs: Challenges for Career Counseling in the Philippines

The article's 1st section provides an overview of the historical development of career counseling in the Philippines from an economic‐political perspective. The 2nd section raises current challenges and concerns, highlighting the need for a career counseling model that would address, among other things, Filipinos' valued characteristics of close family ties and desire for economic progress.     

TOOLS OR TOYS? THE IMPACT OF HIGH TECHNOLOGY ON SCHOLARLY PRODUCTIVITY

We examine the impact of communication technology on scholarly productivity by considering patterns of coauthored economics articles. Using articles in three major economics journals from 1970–79 and 1992–96, we find (1) sharp growth from distant coauthorships (authors not in the same metropolitan area prior to publication), as the theory predicts, and, contrary to theory, (2) lower productivity of distant than close-coauthored works and no decline in their relative disadvantage. These findings are reconciled by noting that high technology has aspects of a consumer good. The relative productivity of solo-authored articles has decreased, perhaps explaining the secular increase in coauthorship.