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Growth, Industrialization, and the Intergenerational Correlation of Advantage

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  • Levine, David I.
  • Jellema, Jon R.

Abstract

The shift from feudalism to industrial capitalism was generally accompanied by an increase in social mobility. We ask whether such an increase has occurred in a developing nation currently undergoing rapid industrialization, Indonesia. It has, at least as measured by a declining intergenerational correlation of education. To highlight the effects of economic growth on intergenerational mobility, we contrast Indonesia’s experience with that of Bangladesh, where industrialization has proceeded more slowly and the correlation between parents’ and children’s education has been roughly stable. We also examine potential causal channels for the rising educational mobility we find in Indonesia, but cannot identify specific pathways related to above-average school building or rapid industrialization.

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Bibliographic Info

Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt2q74s1tg.

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Date of creation: 06 Oct 2005
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Handle: RePEc:cdl:indrel:qt2q74s1tg

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Keywords: Industrialization; Developing Countries; Indonesia; Bangladesh;

References

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  1. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
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  3. Casey B. Mulligan, 1999. "Galton versus the Human Capital Approach to Inheritance," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S184-S224, December.
  4. Kenneth A. Couch & Thomas A. Dunn, 1995. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Discussion Papers of DIW Berlin 111, DIW Berlin, German Institute for Economic Research.
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  8. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  9. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Intergenerational Mobility in Latin America," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
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  11. Corak, Miles Heisz, Andrew, 1998. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Analytical Studies Branch Research Paper Series 1998113e, Statistics Canada, Analytical Studies Branch.
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  13. Binder, Melissa & Woodruff, Christopher, 2002. "Inequality and Intergenerational Mobility in Schooling: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 249-67, January.
  14. Bhashkar Mazumder, 2001. "Earnings mobility in the US: a new look at intergenerational inequality," Working Paper Series WP-01-18, Federal Reserve Bank of Chicago.
  15. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
  16. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, vol. 107(440), pages 47-66, January.
  17. Black, Dan & Sanders, Seth & Taylor, Lowell, 2003. "Measurement of Higher Education in the Census and Current Population Survey," Journal of the American Statistical Association, American Statistical Association, vol. 98, pages 545-554, January.
  18. Esther Duflo, 2000. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," NBER Working Papers 7860, National Bureau of Economic Research, Inc.
  19. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
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