{"id":{"repo_id":"montana-tech","oai_identifier":"oai:scholarworks.umt.edu:etd-1607"},"canonical_url":"https://search.dev.ndltd.org/etd/montana-tech/oai:scholarworks.umt.edu:etd-1607","repository":{"repo_id":"montana-tech","name":"Montana Technology","base_url":"https://scholarworks.umt.edu/do/oai/"},"display":{"title":"INTERGENERATIONAL EARNINGS CORRELATIONS IN INDONESIA","abstract":"How important are parent’s incomes in determining their children’s incomes? Does this relationship matter for children in developing countries more than they do for those in developed countries? Are the linkages of wage income across generations different from the linkages of other kinds of income? This paper will analyze these questions by quantifying the correlations in earnings between parents and their adult children in Indonesia. By measuring the intergenerational earnings correlation, or how correlated children’s earnings are to that of their parent’s earnings, we can quantify how important the parent’s initial position on the income distribution is in determining their children’s ultimate location in the distribution. Indonesia is an interesting case study as the developing county has gone through rapid economic growth over the past 30 years. The RAND Corporation conducted four waves of surveys in Indonesia between 1993 and 2007 in Indonesia, entitled the Indonesian Family Life Survey (IFLS), and this will be the primary data source for this analysis. The empirical models in this analysis will primarily use the children’s earnings data as the dependent variable and their parent’s earnings as an independent variable. Then we will examine the estimated regression coefficient on parent’s earning and interpret that as an estimate of the intergenerational correlation. This analysis finds the estimated intergenerational elasticity of earnings in Indonesia to be between 0.08 and 0.35, but seems to be close to 0.2 when all the evidence is considered. These estimates would indicate intergenerational earnings correlation is roughly equal to the levels in the United States. Additionally, this analysis finds there is little difference in the correlation between wage earnings and the broader measure of income including non-wage components.","abstract_html":"How important are parent’s incomes in determining their children’s incomes? Does this relationship matter for children in developing countries more than they do for those in developed countries? Are the linkages of wage income across generations different from the linkages of other kinds of income? This paper will analyze these questions by quantifying the correlations in earnings between parents and their adult children in Indonesia. By measuring the intergenerational earnings correlation, or how correlated children’s earnings are to that of their parent’s earnings, we can quantify how important the parent’s initial position on the income distribution is in determining their children’s ultimate location in the distribution. Indonesia is an interesting case study as the developing county has gone through rapid economic growth over the past 30 years. The RAND Corporation conducted four waves of surveys in Indonesia between 1993 and 2007 in Indonesia, entitled the Indonesian Family Life Survey (IFLS), and this will be the primary data source for this analysis. The empirical models in this analysis will primarily use the children’s earnings data as the dependent variable and their parent’s earnings as an independent variable. Then we will examine the estimated regression coefficient on parent’s earning and interpret that as an estimate of the intergenerational correlation. This analysis finds the estimated intergenerational elasticity of earnings in Indonesia to be between 0.08 and 0.35, but seems to be close to 0.2 when all the evidence is considered. These estimates would indicate intergenerational earnings correlation is roughly equal to the levels in the United States. Additionally, this analysis finds there is little difference in the correlation between wage earnings and the broader measure of income including non-wage components.","abstract_has_math":false,"creators":["Dale, Eric"],"institution":"University of Montana","degree_name":"Master of Arts (MA)","degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2013,"date_issued":"2013-01-01T08:00:00Z","date_published":"2013-01-01T08:00:00Z","updated_at":"2026-07-24T03:13:28Z","subjects":["INTERGENERATIONAL CORRELATION","INDONESIA"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://scholarworks.umt.edu/etd/588","outbound_label":"Repository record","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Dale, Eric"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:publisher","label":"Institution","values":["University of Montana"]},{"key":"dc:type","label":"Dc Type","values":["Thesis - Campus Access Only"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Master of Arts (MA)"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["INTERGENERATIONAL CORRELATION","INDONESIA"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["https://scholarworks.umt.edu/etd/588"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["How important are parent’s incomes in determining their children’s incomes? Does this relationship matter for children in developing countries more than they do for those in developed countries? Are the linkages of wage income across generations different from the linkages of other kinds of income? This paper will analyze these questions by quantifying the correlations in earnings between parents and their adult children in Indonesia. By measuring the intergenerational earnings correlation, or how correlated children’s earnings are to that of their parent’s earnings, we can quantify how important the parent’s initial position on the income distribution is in determining their children’s ultimate location in the distribution. Indonesia is an interesting case study as the developing county has gone through rapid economic growth over the past 30 years. The RAND Corporation conducted four waves of surveys in Indonesia between 1993 and 2007 in Indonesia, entitled the Indonesian Family Life Survey (IFLS), and this will be the primary data source for this analysis. The empirical models in this analysis will primarily use the children’s earnings data as the dependent variable and their parent’s earnings as an independent variable. Then we will examine the estimated regression coefficient on parent’s earning and interpret that as an estimate of the intergenerational correlation. This analysis finds the estimated intergenerational elasticity of earnings in Indonesia to be between 0.08 and 0.35, but seems to be close to 0.2 when all the evidence is considered. These estimates would indicate intergenerational earnings correlation is roughly equal to the levels in the United States. Additionally, this analysis finds there is little difference in the correlation between wage earnings and the broader measure of income including non-wage components."]},{"key":"dc:title","label":"Title","values":["INTERGENERATIONAL EARNINGS CORRELATIONS IN INDONESIA"]}]}],"canonical_facts":{"dc:creator":["Dale, Eric"],"dc:description.abstract":["How important are parent’s incomes in determining their children’s incomes? Does this relationship matter for children in developing countries more than they do for those in developed countries? Are the linkages of wage income across generations different from the linkages of other kinds of income? This paper will analyze these questions by quantifying the correlations in earnings between parents and their adult children in Indonesia. By measuring the intergenerational earnings correlation, or how correlated children’s earnings are to that of their parent’s earnings, we can quantify how important the parent’s initial position on the income distribution is in determining their children’s ultimate location in the distribution. Indonesia is an interesting case study as the developing county has gone through rapid economic growth over the past 30 years. The RAND Corporation conducted four waves of surveys in Indonesia between 1993 and 2007 in Indonesia, entitled the Indonesian Family Life Survey (IFLS), and this will be the primary data source for this analysis. The empirical models in this analysis will primarily use the children’s earnings data as the dependent variable and their parent’s earnings as an independent variable. Then we will examine the estimated regression coefficient on parent’s earning and interpret that as an estimate of the intergenerational correlation. This analysis finds the estimated intergenerational elasticity of earnings in Indonesia to be between 0.08 and 0.35, but seems to be close to 0.2 when all the evidence is considered. These estimates would indicate intergenerational earnings correlation is roughly equal to the levels in the United States. Additionally, this analysis finds there is little difference in the correlation between wage earnings and the broader measure of income including non-wage components."],"dc:identifier":["https://scholarworks.umt.edu/etd/588"],"dc:publisher":["University of Montana"],"dc:subject":["INTERGENERATIONAL CORRELATION","INDONESIA"],"dc:title":["INTERGENERATIONAL EARNINGS CORRELATIONS IN INDONESIA"],"dc:type":["Thesis - Campus Access Only"],"thesis:degree_name":["Master of Arts (MA)"]},"updated_at":"2026-07-24T03:13:28Z"}