Three Essays on Development Economics


Student thesis: Doctoral Thesis

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Award date16 Jan 2019


Intergenerational Transmission of Educational Attainment in Indonesia

We used five waves of Indonesian Family Life Survey (IFLS) to create unique father-son matched data that is representative of more than 80% of adult male population (aged 25-53) in Indonesia. By using this data, we investigate the evolution of intergenerational transmission of education attainment in Indonesia over time, by ethnicities, and by regions. We define the educational persistence, as measured by correlation coefficient of father’s education as a predictor of son’s education. We find no secular trend in education persistence over time, thus, we decomposed the correlation following Checchi et al. (2008). Decomposed intergenerational correlation revealed although the persistence has declined at the lower end of fathers’ education distribution, it has increased at the top end of the distribution. We also captured the differential patterns in education persistence for six major ethnic groups and 11 provinces of Indonesia. Thereafter, we document the stationary distribution and found the conclusive evidence of non-convergence in education attainment over time, among ethnicities and among regions.

Consumption Smoothing in Pakistan: Dynamics of Risk and Insurance

This study analyzes to which extent the distribution of consumption is affected by the relative wage movement among the birth cohorts and education groups. Our empirical design based on synthetic panel constructed through repeated cross sectional data from “Household Integrated Economic Survey of Pakistan.” We limit our analysis to those aged between 26 to 50 years at the time of survey. To see the evolution of change in income and consumption we measured growth by taking 6, 8 and 10 years difference respectively. The findings ascertained there is limited risk-sharing across cohort-education groups in Pakistan, but the measured extent of risk-sharing increases over longer horizons. Furthermore, we observe relatively higher consumption smoothing among the less educated people over the period of ten years. In the university education group, result reveals, in short time period, for instance in six and eight years difference, there is a lesser consumption smoothing. Study concludes that the measured risk-sharing over a decade is better in Pakistan than in the developed countries.

The Economic Consequences of Hospitalizations for Older Workers across Countries

This paper estimates the effect of hospital admissions on economic outcomes across countries. We use harmonized longitudinal survey data from the United States, China, and 17 countries in Europe, and follow the event study design of Dobkin et al. (2018) to estimate dynamic effects of a hospitalization on out-of-pocket health expenditures, labor market outcomes, social insurance payments, and household income. We find distinctly different patterns across countries. In contrast to the United States, where hospitalizations lead to large health expenditures and decreases in earnings, individuals in Northern and Southern Europe are largely protected from negative outcomes. Hospitalizations in China lead to even larger out-of-pocket expenditures as a percent of prior income, but do not negatively affect labor market outcomes. Our results largely align with the differences in generosity across countries in social protection institutions.