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Inference for ranks with applications to mobility across neighborhoods and academic achievement across countries

Author

Listed:
  • Magne Mogstad

    (Institute for Fiscal Studies and University of Chicago)

  • Joseph P. Romano

    (Institute for Fiscal Studies and Stanford University)

  • Azeem M. Shaikh

    (Institute for Fiscal Studies and University of Chicago)

  • Daniel Wilhelm

    (Institute for Fiscal Studies and University College London)

Abstract

It is often desired to rank di?erent populations according to the value of some feature of each population. For example, it may be desired to rank neighborhoods according to some measure of intergenerational mobility or countries according to some measure of academic achievement. These rankings are invariably computed using estimates rather than the true values of these features. As a result, there may be considerable uncertainty concerning the rank of each population. In this paper, we consider the problem of accounting for such uncertainty by constructing con?dence sets for the rank of each population. We consider both the problem of constructing marginal con?dence sets for the rank of a particular population as well as simultaneous con?dence sets for the ranks of all populations. We show how to construct such con?dence sets under weak assumptions. An important feature of all of our constructions is that they remain computationally feasible even when the number of populations is very large. We apply our theoretical results to re-examine the rankings of both neighborhoods in the United States in terms of intergenerational mobility and developed countries in terms of academic achievement. The conclusions about which countries do best and worst at reading, math, and science are fairly robust to accounting for uncertainty. The con?dence sets for the ranking of the 50 most populous commuting zones by mobility are also found to be small. However, the mobility rankings become much less informative if one includes all commuting zones, if one considers neighborhoods at a more granular level (counties, Census tracts), or if one uses movers across areas to address concerns about selection.

Suggested Citation

  • Magne Mogstad & Joseph P. Romano & Azeem M. Shaikh & Daniel Wilhelm, 2021. "Inference for ranks with applications to mobility across neighborhoods and academic achievement across countries," CeMMAP working papers CWP17/21, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:cemmap:17/21
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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