Weekly Seminar
Date
13.09.2021
Schedule
12:00
Location
Aula ICS-Siemens Gamesa
Speaker
Jan Stuhler (UC3M)
Educational Mobility Across Multiple Generations in Indonesia

Recent multigenerational studies suggest that conventional intergenerational correlations understate the extent to which educational inequalities persist across generations. This evidence stems nearly exclusively from developed countries, and it is still unclear whether this pattern extends to less developed nations. We address this question theoretically and empirically in the context of Indonesia. First, we theoretically identify two important factors affecting multigenerational transmission in the developing world: (i) financial and credit constraints, and (ii) cultural norms and marital sorting. We then estimate multigenerational correlations in schooling across three generations, using five waves of the Indonesian Family Life Survey. In contrast to the literature, we find a negative coefficient on the schooling of grandparents, implying a lower level of multigenerational transmission than traditionally found in developed countries. We exploit data on marital practices, education expenditures and differential exposure of cohorts to the 1997 financial crisis to tease out likely mechanisms. These analyses suggest that the lower level of multigenerational transmission in Indonesia is more likely to be driven by tighter financial constraints in educational investments, than by differences in marital practices.

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