Universitas Indonesia Conferences, International Conference on Environmental Science and Sustainable Development 2019

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Intergenerational Income Mobility Among Sons and Daughters in Indonesia
Restananda Nabilla Yusacc, Dwini Handayani

Last modified: 2019-08-14

Abstract


In the topic of intergenerational income mobility, only a handful studies covered this topic in regards to gender differences in developing countries due to limitations in data, particularly for informal-employed individual and women. However, the importance cannot be missed, in line with Sustainable Development Goals for eradication of poverty, gender equality and reduced inequalities. Sons and daughters in more traditional society like Indonesia is expected to fill certain roles, whether it is by their parents or society. Therefore, sons and daughters will possess different characteristics, both in childhood or adulthood. As society advances, not only the difference in sons and daughters persisted, but also difference among generations. This study aims to explain the condition of intergenerational income mobility in Indonesia and the difference among sons and daughters. Using data from Indonesia Family Life Survey 5, estimation is done through Ordinary Least Squared and Heckman Selection. This study found that Indonesia is in intermediate level of intergenerational income mobility, and difference among sons and daughters existed when controlling for personal characteristics. Child’s own education give greater benefit than parent’s education, an indication of equality of opportunity. For sons, marriage give greater benefit as a means to increase their personal income since they are expected to provide for their families. For daughters, living in urban area and formally employed give greater benefit as a means to increase personal income since there are better opportunities.

Keywords


intergenerational income mobility; gender differences; sustainable development; Heckman Selection