Relative intergenerational mobility: a normative framework and evidence from Indonesia

We propose a simple and flexible framework to assess relative intergenerational mobility.The approach defines a dynasty as a parent–child pair, measuring achievementby each individual’s rank within their own generational outcome distribution, andmobility by the change in this rank across generations. This measure accommodatesboth continuous outcomes, such as potential earnings, and discrete or ordinal outcomes,such as education levels. It also allows for dominance characterizations (e.g.,the relative progress made by women vs. men) consistent with social preferences overdesirable mobility patterns. We apply the framework to Indonesia using long-paneldata linking parents observed in 1993 to their children in 2014. Results show thata large share of the population escaped illiteracy—an instance of absolute mobilitypossibly driven by major education reforms. However, relative educational mobilitywas regressive, as dynasties from higher socio-economic backgrounds progressedfaster. This pattern limited the overall progressivity of relative earnings mobility.Mobility in both education and potential earnings was markedly more favorable to women. JEL classification: J6, J62, O12, I2, D6