Publication:
Growing Up Together: Sibling Correlation, Parental Influence, and Intergenerational Educational Mobility in Developing Countries

Abstract
This paper presents credible and comparable evidence on intergenerational educational mobility in 53 developing countries using sibling correlation as a measure, and data from 230 waves of Demographic and Health Surveys. It is the first paper to provide estimates of sibling correlation in schooling for a large number of developing countries using high quality standardized data. Sibling correlation is an omnibus measure of mobility as it captures observed and unobserved family and neighborhood factors shared by siblings when growing up together. The estimates suggest that sibling correlation in schooling in developing countries is much higher (average 0.59) than that in developed countries (average 0.41). There is substantial spatial heterogeneity across regions, with Latin America and Caribbean having the highest (0.65) and Europe and Central Asia the lowest (0.48) estimates. Country level heterogeneity within a region is more pronounced. The evolution of sibling correlation suggests a variety of mobility experiences, with some regions registering a monotonically declining trend from the 1970s birth cohort to the 1990s birth cohort (Latin America and the Caribbean and East Asia and Pacific), while others remained trapped in stagnancy (South Asia and Sub-Saharan Africa). The only region that experienced monotonically increasing sibling correlation is the Middle East and North Africa. The recent approach of Bingley and Cappellari (2019) is used to estimate the share of sibling correlation due to intergenerational transmission. The estimates show that when the homogeneity and independence assumptions implicit in the standard model of intergenerational transmission are relaxed, the estimated share is much larger. In the sample of countries, on average 74 percent of sibling correlation can be attributed to intergenerational transmission, while there are some countries where the share is more than 80 percent (most in Sub-Saharan Africa). This suggests a dominant role for parents in determining the educational opportunities of their children. Evidence on the evolution of the intergenerational share, however, suggests a declining importance of the intergenerational transmission component in many countries, but the pattern is diverse. In some cases, the trend in the intergenerational share is opposite to the trend in sibling correlation.
Link to Data Set
Citation
Ahsan, Md. Nazmul; Emran, M. Shahe; Jiang, Hanchen; Han, Qingyang; Shilpi, Forhad. 2023. Growing Up Together: Sibling Correlation, Parental Influence, and Intergenerational Educational Mobility in Developing Countries. Policy Research Working Papers;10285. © World Bank. http://hdl.handle.net/10986/39440 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    What the Mean Measures of Mobility Miss
    (World Bank, Washington, DC, 2022-06) Ahsan, Md. Nazmul; Emran, M. Shahe; Hanchen, Jiang; Shilpi, Forhad
    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). 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. 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.
  • Publication
    The Rural-Urban Divide and Intergenerational Educational Mobility in a Developing Country
    (World Bank, Washington, DC, 2020-11) Ahsan, Md Nazmul; Emran, M. Shahe; Shilpi, Forhad
    This paper provides an analysis of the rural-urban divide in intergenerational educational mobility in Indonesia with two distinguishing features. First, the estimating equations are derived from theory incorporating rural-urban differences in returns to education and school quality, and possible complementarity between parent’s education and financial investment. Second, the data are suitable for tackling the biases from sample truncation due to coresidency and omitted cognitive ability heterogeneity. The evidence rejects the workhorse linear intergenerational educational persistence equation in favor of a convex relation in rural and urban Indonesia. The rural-urban relative mobility curves cross, with the children of low educated fathers enjoying higher relative mobility in rural areas, while the pattern flips in favor of the urban children when the father has more than nine years of schooling. However, the rural children face lower absolute mobility across the whole distribution of father's schooling. Estimates from the investment equation suggest that, in urban areas, children~^!!^s peers are complementary to financial investment by parents, while the adult role models are substitutes. In contrast, separability holds in villages. Peers and role models are not responsible for the convexity in both rural and urban areas, suggesting more efficient investment by educated parents as a likely mechanism, as proposed by Becker et al. (2015, 2018). The theoretical relation between the intercepts of the mobility and investment equations helps in understand whether school quality is complementary to or a substitute for parental financial investment. This paper finds evidence of substitutability, implying that public investment to improve the quality of rural schools is desirable on both equity and efficiency grounds.
  • Publication
    Admission is Free Only if Your Dad is Rich! Distributional Effects of Corruption in Schools in Developing Countries
    (World Bank, Washington, DC, 2013-10) Emran, M. Shahe; Islam, Asadul; Shilpi, Forhad
    In the standard model of corruption, the rich are more likely to pay bribes for their children's education, reflecting higher ability to pay. This prediction is, however, driven by the assumption that the probability of punishment for bribe-taking is invariant across households. In many developing countries lacking in rule of law, this assumption is untenable, because the enforcement of law is not impersonal or unbiased and the poor have little bargaining power. In a more realistic model where the probability of punishment depends on the household's economic status, bribes are likely to be regressive, both at the extensive and intensive margins. Using rainfall variations as an instrument for household income in rural Bangladesh, this paper finds strong evidence that corruption in schools is doubly regressive: (i) the poor are more likely to pay bribes, and (ii) among the bribe payers, the poor pay a higher share of their income. The results indicate that progressivity in bribes reported in the earlier literature may be due to identification challenges. The Ordinary Least Squares regressions show that bribes increase with household income, but the Instrumental Variables estimates suggest that the Ordinary Least Squares results are spurious, driven by selection on ability and preference. The evidence reported in this paper implies that "free schooling" is free only for the rich and corruption makes the playing field skewed against the poor. This may provide a partial explanation for the observed educational immobility in developing countries.
  • Publication
    Gender Bias and Intergenerational Educational Mobility
    (World Bank, Washington, DC, 2020-05) Emran, M. Shahe; Jiang, Hanchen; Shilpi, Forhad
    This paper incorporates gender bias against girls in the family, school and labor market in a model of intergenerational persistence in schooling where parents self-finance children's education because of credit market imperfections. Parents may underestimate a girl's ability, expect lower returns, and assign lower weights to their welfare (“pure son preference”). The model delivers the widely used linear conditional expectation function under constant returns and separability but generates an irrelevance result: parental bias does not affect relative mobility. With diminishing returns and complementarity, the conditional expectation function can be concave or convex, and parental bias affects both relative and absolute mobility. This paper tests these predictions in India and China using data not subject to coresidency bias. The evidence rejects the linear conditional expectation function in rural and urban India in favor of a concave relation. Girls in India face lower mobility irrespective of location when born to fathers with low schooling, but the gender gap closes when the father is college educated. In China, the conditional expectation function is convex for sons in urban areas, but linear in all other cases. The convexity supports the complementarity hypothesis of Becker et al. (2018) for the urban sons and leads to gender divergence in relative mobility for the children of highly educated fathers. In urban China, and urban and rural India, the mechanisms are underestimation of the ability of girls and unfavorable school environment. There is some evidence of pure son preference in rural India. The girls in rural China do not face bias in financial investment by parents, but they still face lower mobility when born to uneducated parents. Gender barriers in rural schools seem to be the primary mechanism.
  • Publication
    Estimating Intergenerational Mobility with Incomplete Data
    (World Bank, Washington, DC, 2018-04) Emran, M. Shahe; Shilpi, Forhad
    The rank-based measures of intergenerational mobility have become increasingly popular in economics literature. Recent evidence shows that rank-based measures are less affected by measurement error and life-cycle bias compared with other standard measures such as intergenerational regression coefficient and intergenerational correlation. However, most of the available household surveys suffer from sample truncation, because coresidency is used to define household membership. There is no evidence on how sample truncation affects the rank-based mobility estimates relative to intergenerational regression coefficient and intergenerational correlation. This paper provides evidence on this in the context of intergenerational schooling persistence, using two exceptional surveys from India and Bangladesh that include all children irrespective of residency status. The analysis shows that the measures of relative mobility (slopes) are biased downward in coresident samples, but the average bias in rank correlation is less than half of that in intergenerational regression coefficient, and comparable to that in intergenerational correlation in magnitude. The intercept estimates are biased upward, with the largest bias found in the intercept of the regression used for intergenerational correlation. Truncation bias in rank-based absolute mobility estimates is the lowest in most cases. The results strengthen the case for rank-based measures of intergenerational mobility when working with the standard household surveys.

Users also downloaded

Showing related downloaded files

  • Publication
    Morocco Economic Update, Winter 2025
    (Washington, DC: World Bank, 2025-04-03) World Bank
    Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.
  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    Europe and Central Asia Economic Update, Spring 2025: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation
    (Washington, DC: World Bank, 2025-04-23) Belacin, Matias; Iacovone, Leonardo; Izvorski, Ivailo; Kasyanenko, Sergiy
    Business dynamism and economic growth in Europe and Central Asia have weakened since the late 2000s, with productivity growth driven largely by resource reallocation between firms and sectors rather than innovation. To move up the value chain, countries need to facilitate technology adoption, stronger domestic competition, and firm-level innovation to build a more dynamic private sector. Governments should move beyond broad support for small- and medium-sized enterprises and focus on enabling the most productive firms to expand and compete globally. Strengthening competition policies, reducing the presence of state-owned enterprises, and ensuring fair market access are crucial. Limited availability of long-term financing and risk capital hinders firm growth and innovation. Economic disruptions are a shock in the short term, but they provide an opportunity for implementing enterprise and structural reforms, all of which are essential for creating better-paying jobs and helping countries in the region to achieve high-income status.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.