Inference for Ranks with Applications to Mobility across Neighborhoods and Academic Achievements across Countries
SeriesLabor Seminars Research on Monday
Speaker(s)Magne Mogstad (University of Chicago, United States)
Date and time
June 07, 2021
16:00 - 17:15
Abstract: It is often desired to rank different 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 confidence sets for the rank of each population. We consider both the problem of constructing marginal confidence sets for the rank of a particular population as well as simultaneous confidence sets for the ranks of all populations. We show how to construct such confidence 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 confidence 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. Joint paper with Joseph P. Romano (Stanford University), Azeem M. Shaikh (University of Chicago), and Daniel Wilhelm (University College London).
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