Jurnal Ekonomi dan Pembangunan
Vol. 31 No. 1 (2023): Jurnal Ekonomi dan Pembangunan

Estimating Intergenerational Income Mobility in Indonesia: Estimating Intergenerational Income Mobility in Indonesia

Muhammad Imam Adli (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)
Gumilang Aryo Sahadewo (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada)



Article Info

Publish Date
04 Sep 2023

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.

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Journal Info

Abbrev

JEP

Publisher

Subject

Description

Jurnal Ekonomi dan Pembangunan (JEP), or Journal of Economics and Development, is a peer-reveiwed journal that publishes original research papers, review articles, and case studies related to economics and development studies in Indonesia and other countries. All papers are peer-reviewed by at least ...