Is the intergenerational transmission of poverty a fallacy? Evidence from Botswana survey data

Abstract

The literature on intergenerational transmission of poverty—ITP—suggests that higher income levels and improved educational attainment of parents tend to impact on children's future welfare. This paper tests the ITP proposition, in the framework of the quantity–quality model, using the 2015/16 Botswana Multiple Topic Indicator Survey data. Results reveal that the ITP assumption is strongly valid—the probability of attaining secondary education by an adolescent—proxy for escaping the poverty trap—is determined by family socio‐economic characteristics. That is, while welfare improvements among current adults are desirable, they could also be impactful on children's tendency to or not escape the poverty trap.