What the Mean Measures of Mobility Miss Learning about Intergenerational Mobility from Conditional Variance

The magnitude of underestimation is especially large for the children born into the most disadvantaged households where fathers have no schooling, while it is negligible for the children of college educated fathers. The standard (but partial) measures may lead to an incorrect ranking of regions and...

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Bibliographic Details
Main Author: Ahsan, Md. Nazmul
Other Authors: Shilpi, Forhad, Hanchen, Jiang, Emran, M. Shahe
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2022
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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100 1 |a Ahsan, Md. Nazmul 
245 0 0 |a What the Mean Measures of Mobility Miss  |h Elektronische Ressource  |b Learning about Intergenerational Mobility from Conditional Variance  |c Md. Nazmul Ahsan 
260 |a Washington, D.C  |b The World Bank  |c 2022 
300 |a 50 pages 
653 |a Risk Adjusted Mobility Measures 
653 |a Paternal Educational Attainment 
653 |a Father's Educational Influence 
653 |a Education Equity 
653 |a Education Gender Gap 
653 |a Social Development 
653 |a Children's Economic Outcomes 
653 |a Education 
653 |a Primary Schooling 
653 |a Intergenerational Educational Mobility 
653 |a Family Educational Attainment 
653 |a Conditional Variance 
653 |a Access and Equity in Basic Education 
653 |a Social Capital 
653 |a Gender 
700 1 |a Shilpi, Forhad 
700 1 |a Hanchen, Jiang 
700 1 |a Emran, M. Shahe 
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082 0 |a 330 
520 |a The magnitude of underestimation is especially large for the children born into the most disadvantaged households where fathers have no schooling, while it is negligible for the children of college educated fathers. The standard (but partial) measures may lead to an incorrect ranking of regions and groups in terms of relative mobility. Compared to the risk-adjusted measures, the standard measures are likely to underestimate the gender gap and rural-urban gap in educational opportunities 
520 |a To understand the role of family background in intergenerational mobility, a large literature has focused on the conditional mean of children's economic outcomes given parent's economic status, while ignoring the information contained in conditional variance. This paper explores the effects of family background on the conditional variance of children's outcomes in the context of intergenerational educational mobility using data from three large developing countries (China, India, and Indonesia). The empirical analysis uses exceptionally rich data free of sample truncation because of the nonresident children at the time of the survey. Evidence from all three countries suggests a strong influence of father's education on the conditional variance of children's schooling. The analysis finds substantial heterogeneity across countries, gender, and geography (rural/urban).  
520 |a Cohort-based estimates suggest that the effects of father's education on the conditional variance have changed qualitatively; in some cases, a positive effect in the 1950s cohort turns into a substantial negative effect in the 1980s cohort. A methodology is developed to incorporate the effects of family background on the conditional variance along with the standard conditional mean effects. This paper derives risk-adjusted measures of relative and absolute mobility by accounting for an estimate of the risk premium for the conditional variance faced by a child. The estimates of risk-adjusted relative and absolute mobility for China, India, and Indonesia suggest that the existing evidence using the standard measures of mobility substantially underestimates the effects of family background on children's educational opportunities, and thus gives a false impression of high educational mobility.