Intergenerational Occupational Mobility in a Rural Economy

36 Pages Posted: 21 Jul 2007

See all articles by M. Shahe Emran

M. Shahe Emran

George Washington University - Department of Economics

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Date Written: June 2007

Abstract

This paper presents evidence on intergenerational occupational mobility from agriculture to the nonfarm sector using survey data from Nepal. In the absence of credible instruments, the degree of selection on observables is used as a guide to the degree of selection on unobservables รก la Altonji et. al. (2005) to address the unobserved genetic correlations relevant for occupation choice. The results show that a moderate ability correlation can easily explain away the observed partial correlation in non-farm participation between the father and a son. In contrast, the partial correlation in occupation choice between mother and daughter is much stronger, and is unlikely to be driven by genetic correlations alone. The results suggest that mother's nonfarm participation plays a causal role in daughter's choice of nonfarm occupation, possibly because of cultural inheritance through role model and learning effects, and transfer of reputation and social capital.

Keywords: Intergenerational Occupational Correlations, Non-Farm Participation, Gender effect, Cultural Inheritance, Selection on Observables, Selection on Unobservables

JEL Classification: J62, O12

Suggested Citation

Emran, M. Shahe and Shilpi, Forhad, Intergenerational Occupational Mobility in a Rural Economy (June 2007). Available at SSRN: https://ssrn.com/abstract=1001271 or http://dx.doi.org/10.2139/ssrn.1001271

M. Shahe Emran (Contact Author)

George Washington University - Department of Economics ( email )

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302 Monroe Hall
Washington, DC 20052
United States

Forhad Shilpi

World Bank - Development Research Group (DECRG) ( email )

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Washington, DC 20433
United States
202-458-7476 (Phone)
202-522-1151 (Fax)

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