The Rural-Urban Divide and Intergenerational Educational Mobility in a Developing Country: Theory and Evidence from Indonesia

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Occupational dualism and intergenerational educational mobility in the rural economy: evidence from China and India

“…For a model where such a credit market exists, and there is diminishing returns to investment in education production function, seeBecker et al (2018).22 Although most of the existing studies on intergenerational mobility adopt this additively separable specification for the impact of ability, there is little evidence on the validity of this assumption. In a recent paper,Ahsan et al (2020) use measures of ability based on Raven's test and two memory tests in Indonesia and find evidence in favor of this assumption.23 For example, none of the 13 studies on educational mobility in developing countries summarized in report estimates of intercepts. Some of the more recent works report measures of absolute mobility that combines both the slope and the intercept effects (followingChetty et al (2014)), but do not report the intercept estimates separately.…”

Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy: Evidence from China and India

“…Although most of the existing studies on intergenerational mobility adopt this additively separable specification for the impact of ability, there is little evidence on the validity of this assumption. In a recent paper,Ahsan et al (2020) use measures of ability based on Raven's test and two memory tests in Indonesia and find evidence in favor of this assumption.…”