Estimating Intergenerational Correlation (IGC) with nlcom

[Anustup Kundu]

Dear Statalisters,

I am trying to estimate the Intergenerational Correlation (IGC) in education using nlcom but cannot figure out how to


\[ IGC : \rho_{IG}= \beta1 * \frac{\sigma_{parent}}{\sigma_{child}} \]



Where P_IG = Intergenerational Correlation (IGC),

Beta1 = intergenerational regression coefficient (IGRC) coming from estimating

\[ Edu_{i,g} = \beta_{0}+ \beta_{1}Edu_{i,parent}+\beta_{2}Y_{i,grandparent} + \epsilon_{ig} \]

and Sigma= standard deviation of the parent/child

* Example generated by -dataex-. To install: ssc install dataex
clear
input float(gen3_edu gen2h_edu gen1_edu)
 9  0  0
15 12  0
12 10 10
 0  8  0
 0  0  0
 8  0  0
 9  9  0
 9  8  0
10  0  0
15 10 10
 9  8  0
 0  0  0
15  0  0
11  8  0
11  0  0
16 10 10
 9  9  9
15  9  9
16  5  5
 8  0  0
 0  0  0
12 12  0
11  0  0
14  0  0
 5  5  5
 8  0  0
12  9  0
12 10  .
 8  0  0
 9  0  0
15  9  0
15  9  9
10 10 10
 9  9  9
10 10 10
 0  0  0
 9  3  0
15  0  0
 9  0  0
13  8  8
 9  0  0
11 12  0
14 10  5
16 10 10
12 10 12
 5  5  5
 7  0  0
15  0  0
 9  5  0
11  0  0
 0  0  5
16  0  0
12  0  8
 9  0  0
 9  9  9
 0  6  6
16  9 12
 9  0  0
15  0  0
 8  7  0
 0  8  0
10  8  0
 8 10 10
 4  0  0
15  0  0
12 10 11
 5  7  7
 2  0  0
 0  8  0
 9  0  0
 9  8  0
 7  0  0
11  0  0
16  7  0
10 10  0
 9  0  0
14  0  0
11  9  0
16  0  0
15  8  0
 8  9  0
12  9  0
 9 12  0
 0  0  0
16 12 12
16  9 10
 9 10  0
12 10  0
10  8  0
 7  0  0
 9  8  0
11  8  0
12  9  0
12  0  0
16  9  0
 9  7  0
 0  0  0
 0  0  0
 3  0  0
14  0  .
end

[Maruf Ahmad]

Hi. @Anustup Kundu,
how did you estimate the above equation. would you please share your stata code?
Best Wishes,
Maruf