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Growth, Industrialization, and the Intergenerational Correlation of Advantage

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

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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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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  1. Iyigun, Murat F, 1999. "Public Education and Intergenerational Economic Mobility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 697-710, August.
  2. Lillard, L.A. & Willis, R.J., 1993. "Intergenerational Educational Mobility: Efects of Family and State in Malaysia," Papers 93-38, RAND - Labor and Population Program.
  3. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
  4. 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.
  5. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
  6. Alan Krueger & Orley Ashenfelter, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," NBER Working Papers 4143, National Bureau of Economic Research, Inc.
  7. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  8. Jere R. Behrman & Alejandro Gaviria & Miguel Székely, 2001. "Intergenerational Mobility in Latin America," Research Department Publications 4267, Inter-American Development Bank, Research Department.
  9. Lorraine Dearden & Stephen Machin & H Reed, 1996. "Intergenerational Mobility in Britain," CEP Discussion Papers dp0281, Centre for Economic Performance, LSE.
  10. 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.
  11. 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.
  12. 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.
  13. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
  14. 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.
  15. 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.
  16. David I. Levine & Bhashkar Mazumder, 2002. "Choosing the right parents: changes in the intergenerational transmission of inequality between 1980 and the early 1990s," Working Paper Series WP-02-08, Federal Reserve Bank of Chicago.
  17. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  18. repec:col:000123:002914 is not listed on IDEAS
  19. 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.
  20. 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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