Author: Rafia Zafar

Institution: Stone Center Working Paper Series. no. 55

Date: September 2022

Abstract: 

This paper estimates absolute and relative intergenerational mobility for Indonesia. My preferred estimates that address both measurement error bias and life-cycle bias show lower intergenerational mobility than standard estimates. I also examine absolute mobility, which separates upward mobility from downward mobility. At the bottom of both the income and consumption distribution, I find lower absolute intergenerational mobility compared to people at the top of the distribution. This paper makes a unique contribution to the literature by showing that household survey data on income and consumption can facilitate reliable estimates for intergenerational mobility in developing countries. 

Link: Intergenerational Mobility in Income and Consumption: Evidence from Indonesia