Educational Mobility Across Multiple Generations in Indonesia

TL;DR

This paper investigates multigenerational educational mobility in Indonesia, revealing higher mobility than previously thought, influenced by financial constraints and cultural norms, using empirical data and a new theoretical framework.

Contribution

It introduces a theoretical model explaining multigenerational educational mobility in developing countries and empirically tests it using Indonesian data, highlighting key influencing factors.

Findings

Greater multigenerational mobility than parent-child correlations suggest

Financial constraints and cultural norms significantly influence mobility

Regional variations support the theoretical framework

Abstract

Standard intergenerational measures have been shown to understate the long-run persistence of socioeconomic advantages in developed countries. We study theoretically and empirically whether this pattern extends to less developed settings, using Indonesia as a case study. Using the Indonesian Family Life Survey (IFLS) and Census data, we study multigenerational correlations in education across three generations. Contrary to previous findings, we observe greater multigenerational mobility than parent-child correlations alone would suggest. We develop a theoretical framework to highlight two key factors influencing multigenerational dynamics in developing countries: (1) financial and credit constraints, and (2) cultural norms related to marital sorting. To confirm their relevance, we exploit regional variations in exposure to the 1997-98 Asian financial crisis and in marital customs.