Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India

This paper extends the Becker-Tomes model of intergenerational educational mobility to a rural economy characterized by farm-nonfarm occupational dualism and provides a comparative analysis of rural China and rural India. The model builds a micro-f...

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Main Authors: Emran, M. Shahe, Ferreira, Francisco, Jiang, Yajing, Sun, Yan
Format: Report
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/435421594655129550/Occupational-Dualism-and-Intergenerational-Educational-Mobility-in-the-Rural-Economy-Evidence-from-China-and-India
http://hdl.handle.net/10986/34125
id okr-10986-34125
recordtype oai_dc
spelling okr-10986-341252022-09-20T00:12:48Z Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India Emran, M. Shahe Ferreira, Francisco Jiang, Yajing Sun, Yan EDUCATIONAL MOBILITY RURAL ECONOMY OCCUPATIONAL DUALISM FARM-NONFARM COMPLEMENTARITY CORESIDENCY BIAS INTERGENERATIONAL MOBILITY LABOR MARKET This paper extends the Becker-Tomes model of intergenerational educational mobility to a rural economy characterized by farm-nonfarm occupational dualism and provides a comparative analysis of rural China and rural India. The model builds a micro-foundation for the widely used linear-in-levels estimating equation. Returns to education for parents and productivity of financial investment in children's education determine relative mobility, as measured by the slope, while the intercept depends, among other factors, on the degree of persistence in nonfarm occupations. Unlike many existing studies based on coresident samples, our estimates of intergenerational mobiity do not suffer from truncation bias. The sons in rural India faced lower educational mobility compared with the sons in rural China in the 1970s to 1990s. To understand the role of genetic inheritance, Altonji et al. (2005) sensitivity analysis is combined with the evidence on intergenerational correlation in cognitive ability in economics and behavioral genetics literature. The observed persistence can be due solely to genetic correlations in China, but not in India. Fathers' nonfarm occupation and education were complementary in determining a sons' schooling in India, but separable in China. There is evidence of emerging complementarity for the younger cohorts in rural China. Structural change in favor of the nonfarm sector contributed to educational inequality in rural India. Evidence from supplementary data on economic mechanisms suggests that the model provides plausible explanations for the contrasting roles of occupational dualism in intergenerational educational mobility in rural India and rural China. 2020-07-16T16:12:00Z 2020-07-16T16:12:00Z 2020-07 Report http://documents.worldbank.org/curated/en/435421594655129550/Occupational-Dualism-and-Intergenerational-Educational-Mobility-in-the-Rural-Economy-Evidence-from-China-and-India http://hdl.handle.net/10986/34125 English Policy Research Working Paper;No. 9316 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific South Asia China India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic EDUCATIONAL MOBILITY
RURAL ECONOMY
OCCUPATIONAL DUALISM
FARM-NONFARM COMPLEMENTARITY
CORESIDENCY BIAS
INTERGENERATIONAL MOBILITY
LABOR MARKET
spellingShingle EDUCATIONAL MOBILITY
RURAL ECONOMY
OCCUPATIONAL DUALISM
FARM-NONFARM COMPLEMENTARITY
CORESIDENCY BIAS
INTERGENERATIONAL MOBILITY
LABOR MARKET
Emran, M. Shahe
Ferreira, Francisco
Jiang, Yajing
Sun, Yan
Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
geographic_facet East Asia and Pacific
South Asia
China
India
relation Policy Research Working Paper;No. 9316
description This paper extends the Becker-Tomes model of intergenerational educational mobility to a rural economy characterized by farm-nonfarm occupational dualism and provides a comparative analysis of rural China and rural India. The model builds a micro-foundation for the widely used linear-in-levels estimating equation. Returns to education for parents and productivity of financial investment in children's education determine relative mobility, as measured by the slope, while the intercept depends, among other factors, on the degree of persistence in nonfarm occupations. Unlike many existing studies based on coresident samples, our estimates of intergenerational mobiity do not suffer from truncation bias. The sons in rural India faced lower educational mobility compared with the sons in rural China in the 1970s to 1990s. To understand the role of genetic inheritance, Altonji et al. (2005) sensitivity analysis is combined with the evidence on intergenerational correlation in cognitive ability in economics and behavioral genetics literature. The observed persistence can be due solely to genetic correlations in China, but not in India. Fathers' nonfarm occupation and education were complementary in determining a sons' schooling in India, but separable in China. There is evidence of emerging complementarity for the younger cohorts in rural China. Structural change in favor of the nonfarm sector contributed to educational inequality in rural India. Evidence from supplementary data on economic mechanisms suggests that the model provides plausible explanations for the contrasting roles of occupational dualism in intergenerational educational mobility in rural India and rural China.
format Report
author Emran, M. Shahe
Ferreira, Francisco
Jiang, Yajing
Sun, Yan
author_facet Emran, M. Shahe
Ferreira, Francisco
Jiang, Yajing
Sun, Yan
author_sort Emran, M. Shahe
title Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
title_short Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
title_full Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
title_fullStr Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
title_full_unstemmed Occupational Dualism and Intergenerational Educational Mobility in the Rural Economy : Evidence from China and India
title_sort occupational dualism and intergenerational educational mobility in the rural economy : evidence from china and india
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/435421594655129550/Occupational-Dualism-and-Intergenerational-Educational-Mobility-in-the-Rural-Economy-Evidence-from-China-and-India
http://hdl.handle.net/10986/34125
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