Job Market Paper:
Instrumental Variable Approach to Estimate Intergenerational Mobility in Income: Evidence from Indonesia
Abstract: By 2030, more than 85% of the world’s population will be living in the developing world. Yet there is very little evidence on intergenerational mobility (IGM) for these countries. In this paper I use multiple waves of the Indonesian Family Life Survey (IFLS) to estimate both absolute and relative intergenerational mobility in income and consumption for Indonesia. My preferred instrument variable estimates on income address both measurement error bias and life-cycle bias in IGM. Furthermore, I also estimate IGM using per capita household consumption expenditures – a long run measure of income. OLS estimate of relative income mobility is 0.08 suggesting high mobility, however, intergenerational mobility in consumption decreases as intergenerational elasticity estimate increases to 0.26. Similar to consumption, the preferred IV estimates on income mobility also suggests lower mobility than its OLS counterpart. I show that even in the absence of tax records, having access to multiple waves of income and consumption data from developing countries can facilitate IGM estimation addressing both measurement error bias and life-cycle bias in income.
Works in Progress:
Multi-generational Education Mobility in Indonesia
Abstract: This paper is the first to provide evidence on multi-generational mobility in education for Indonesia, that is, measures changes in child’s education relative to both parent and grandparent. Using the Intercensal Survey of Indonesia (SUPAS) I find education persistence of 0.45 between father and child and 0.27 between grandchild and grandfather. Estimates show lower education persistence between grandchild and grandfather. My findings do not show any gender difference in education mobility in Indonesia. I also estimate the impact of the Indonesian Primary School Construction (INPRES) on education mobility, results show that children exposed to INPRES experienced higher education mobility. This paper contributes to the existing literature by providing evidence on multi-generational education mobility in Indonesia using multiple data sets. Evidence from this paper also suggests that policy interventions like INPRES can be promising in facilitating education mobility.
Labor Market Returns to Big Five Personality Traits: Evidence from Indonesia (with Subha Mani & Helene Purcell)
Abstract: There is quite a bit of evidence on the returns of non-cognitive skills/personality traits from developed countries, and common sense view suggests that these socio-emotional traits must also be important for explaining life outcomes in developing countries, though the empirical evidence remains scarce. The objective of this paper is to contribute evidence on the economic returns to Big Five personality traits using large-scale household survey data from Indonesia. We use data from multiple waves of IFLS to estimate causal relationship between Big Five personality traits and labor market outcomes.