Good empirical analysis of the intergenerational transmission (IGT) of poverty is challenging. This note clarifies this challenge and possible contributions by considering:
what estimated relations would be informative for improving
understanding within an intergenerational life-cycle behavioural
framework with important unobserved variables (e.g. genetics)
possible resolutions to estimation problems
different types of data.
The greatest progress can be made by focusing on:
Links between parental background and adult child resource access for
which effects are thought to be particularly large and relatively
High quality data regarding (a) representativeness, (b) power, (c)
coverage of important concepts for such studies and (d) limited
Data that permit better estimates, including their robustness to
different assumptions - e.g. with complete information on key
variables for two or three generations, on intergenerational
transfers, linked to time series records on contextual changes,
sibling information, experiments, and/or longitudinal data.
Through careful examination of existing data, keeping in mind considerations in this note, much can be learned about the IGT of poverty. But it is also important to be alert to opportunities for improving data and for encouraging collection of new and better data.
Methodological Note: Using Micro Data to Understand Better theIntergenerational Transmission of Povertyin Low Income Developing Countries, CPRC Working Paper No. 68, IDPM/Chronic Poverty Research Centre (CPRC), Manchester, UK, ISBN: 1-904049-67-2, ii + 29 pp.