A Dream of Offspring: Two Decades of Intergenerational Economic Mobility in Indonesia

Figures & data

Table 1. Descriptive Statistics

Note: The quintiles are based on children’s expenditure in 2014.

Source: Authors’ estimation.

FIGURE 1 Distribution of Expenditure between Parents and Children

Source: Authors’ estimation.

Note: Kernel = epanechnikov, bandwidth = 4.3e+03.

FIGURE 2 Absolute Mobility: Percentage of Children with Weak versus Strong Mobility, by Consumption Quantile

Source: Authors’ estimation.

Note: Strong mobility refers to the condition whereby the children’s consumption quantile is uniformly larger than their parents’ consumption quantile in the national distribution; weak mobility refers to the condition whereby the children’s consumption quantile is equal to or larger than their parents’ consumption quantile in the national distribution.

FIGURE 3 Absolute Mobility: Percentage of Children, by Age Cohort, Earning More Than Their Parents, by Expenditure Decile, 1993

Source: Authors’ estimation.

FIGURE 4 Relative Mobility between Quintiles: Parents versus Children

Source: Authors’ estimation.

Table 2. Results of Logistic Regression

Notes: Robust standard errors in parentheses; *** p < 0.01, ** p < 0.05, * p < 0.1; SM refers to strong mobility, while WM refers to weak mobility; dy/dx is for the discrete change of the dummy variable from 0 to 1.

Source: Authors’ estimation.

FIGURE 5 Relative Mobility: Unconditional Quintile Regression (UQR) versus Ordinary Least Square (OLS) Mobility Results

Source: Authors’ estimation.

Table 3. Estimation Results of Ordinary Least Square (OLS) and Unconditional Quantile Regression

Notes: Robust standard errors in parentheses; *** p < 0.01, ** p < 0.05, * p < 0.1.

Source: Authors’ estimation.

Table 4. Summary of Robustness Test for Different Specifications

Notes: Robust standard errors in parentheses; baseline controls refer to the controls in table 3; additional controls are mother’s years of schooling, non-business assets and working in the formal sector; transfer and social assistance controls refer to transfers from parents and social assistance, including unconditional cash transfers, conditional cash transfers, subsidised rice and health insurance; community controls are distance to the closest market, subdistrict and village office, the presence of asphalt roads and irrigation systems, the number of posyandu, midwife dummy, dummy poliklinik, dummy for the availability of financial institutions and the number of schools (primary, junior and high school); the dependent variable is per-capita income.

*** p < 0.01, ** p < 0.05, * p < 0.1.

Source: Authors’ estimation.