Human Capital, Mobility, and Income Dynamics: Evidence from Indonesia
This paper examines the effects of household formation on income dynamics using panel data from Indonesia. The focus of our analysis is to explore the determinants of household income dynamics in 1995-2007 when we change the definition of household. Empirical results show that intergenerational gap in education (i.e., education growth) as well as the number of young and prime-age members in the household play important roles in determining income dynamics, especially when we include out-migrants. This is consistent with individual migration behavior: the young and educated tend to move out of their villages over the 12 years. We also found that out-migration increases net-remittances to the household. The results indicate the importance of human capital as well as endogenous migration (attrition) in rural household income dynamics.
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- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001.
"Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey,"
Journal of Human Resources,
University of Wisconsin Press, vol. 36(3), pages 556-592.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2000. "Lost But Not Forgotten: Attrition and Follow-up in the Indonesian Family Life Survey," Working Papers 00-03, RAND Corporation.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2004. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Labor and Demography 0408007, EconWPA.
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