ESTIMATING INTERGENERATIONAL INCOME MOBILITY IN INDONESIA

ESTIMATING INTERGENERATIONAL INCOME MOBILITY IN INDONESIA

Intergenerational income mobility; intergenerational elasticity; equality of opportunity

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

Muhammad Imam Adli1, Gumilang Aryo Sahadewo2

https://ejournal.brin.go.id/JEP/issue/view/93

Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

2023

Fajar bagus W

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English

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