Educational Mobility Across Multiple Generations in Indonesia

Sarah Cattan (), Antonio Dalla-Zuanna (), Jan Stuhler () and Po Yin Wong
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Sarah Cattan: Institute for Fiscal Studies
Antonio Dalla-Zuanna: Bank of Italy
Jan Stuhler: Universidad Carlos III de Madrid
Po Yin Wong: Queen Mary University of London

No 2026-005, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: Standard intergenerational measures have been shown to understate the long-run persistence of socioeconomic advantages in developed countries. We study theoretically and empirically whether this pattern extends to less developed settings, using Indonesia as a case study. Using the Indonesian Family Life Survey (IFLS) and Census data, we study multigenerational correlations in education across three generations. Contrary to previous findings, we observe greater multigenerational mobility than parent-child correlations alone would suggest. We develop a theoretical framework to highlight two key factors influencing multigenerational dynamics in developing countries: (1) financial and credit constraints, and (2) cultural norms related to marital sorting. To confirm their relevance, we exploit regional variations in exposure to the 1997-98 Asian financial crisis and in marital customs.

Keywords: intergenerational mobility; multigenerational persistence; education constraints; financial constraints; Indonesia (search for similar items in EconPapers)
JEL-codes: D10 I24 J24 J62 (search for similar items in EconPapers)
Date: 2026-04
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http://humcap.uchicago.edu/RePEc/hka/wpaper/Cattan ... bility-indonesia.pdf First version, April 14, 2026 (application/pdf)

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