Climbing the Ladder: Socioeconomic Mobility in Malaysia*

Muhammed Abdul Khalid
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Muhammed Abdul Khalid: Centre for Policy Research and International Studies (CenPRIS) University Sains Malaysia 11800 USM Pulau Pinang, Malaysia Author email: Muhammed.abdulkhalid@gmail.com

Asian Economic Papers, 2018, vol. 17, issue 3, 1-23

Abstract: This study investigates the existence and extent of intergenerational mobility in Malaysia in terms of educational attainment, occupational skills level, and income level. It compares the status of working adults born between the years 1945 and 1960 and their adult children born between 1975 and 1985, using non-linear transition matrix techniques. On average, the majority of adult children have better educational attainment and occupational skills level compared with their parents. Income mobility, in absolute and relative terms, is highest among children born to parents in the lowest income quintile. The results of a logistic regression model show that education, assets ownership, gender, and location matter for upward mobility. Moving forward, there will be difficulties for the children from poor families to move up the socioeconomic ladder because of changes in policies. An inclusive development approach is vital in enhancing socioeconomic mobility to promote social cohesion, economic growth, and greater equity for the next generation.

Date: 2018
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