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Muhammad Imam Adli
Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

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Estimating Intergenerational Income Mobility in Indonesia: Estimating Intergenerational Income Mobility in Indonesia Muhammad Imam Adli; Gumilang Aryo Sahadewo
Jurnal Ekonomi dan Pembangunan Vol. 31 No. 1 (2023): Jurnal Ekonomi dan Pembangunan
Publisher : BRIN Publishing (Penerbit BRIN)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55981/jep.2023.1014

Abstract

This study estimates the intergenerational income mobility in Indonesia using data from the 1st, 2nd, 3rd, and 5th of the Indonesian Family Life Survey (IFLS). Intergenerational income mobility is proxied by intergenerational elasticity, which measures the correlation between parents and their children’s incomes. Intergenerational elasticity is also regarded as a measure of equality of opportunity. The estimates in this study suggest that intergenerational elasticity for father-son pairs in Indonesia is between 0.44 and 0.50. Compared to other ASEAN countries, Indonesia is less mobile than Singapore but more mobile than Malaysia. Further analyses of the income mobility matrix indicate relatively low mobility for individuals in the upper-income quartile and medium mobility for individuals in the lower-income quartile.
Co-Authors Gumilang Aryo Sahadewo