Intergenerational Occupational Mobility in Rural Economy: Evidence from Nepal and Vietnam

Posted: 5 Sep 2010

See all articles by Forhad Shilpi

Forhad Shilpi

World Bank - Development Research Group (DECRG)

M. Shahe Emran

George Washington University - Department of Economics

Date Written: September 3, 2010

Abstract

This paper presents evidence on intergenerational occupational mobility from agriculture to nonfarm sector using survey data from Nepal and Vietnam. In the absence of credible instruments, the degree of selection on observables is used as a guide to the degree of selection on unobservables a la Altonji et. al. (2005) to address the unobserved genetic correlations. The results show that intergenerational occupational mobility is lower among women in both countries, and is lower in Nepal compared to Vietnam. In case of Nepal, there is strong evidence in favor of a causal role played by mother's nonfarm participation in daughter's occupation choice, possibly because of cultural inheritance in a traditional society.

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

JEL Classification: J62, O12

Suggested Citation

Shilpi, Forhad and Emran, M. Shahe, Intergenerational Occupational Mobility in Rural Economy: Evidence from Nepal and Vietnam (September 3, 2010). Journal of Human Resources, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1671624

Forhad Shilpi

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

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M. Shahe Emran (Contact Author)

George Washington University - Department of Economics ( email )

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