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INTERGENERATIONAL ECONOMIC MOBILITY: THE CASE OF NORTH-WESTERN PAKISTAN
Corresponding Author(s) : Jawad Rahim Afridi
Humanities & Social Sciences Reviews,
Vol. 9 No. 3 (2021): May
Abstract
Purpose of the Study: The research aimed to investigate the role of tribal identity in the economic mobility of the people in the province of Khyber Pakhtunkhwa, Pakistan. Tribal identity is an important determinant of socio-status among the people living in the province and the adjacent areas bordering Afghanistan. This research argues that membership of a tribe either facilitates or constrains the upward economic mobility of people in this part of Pakistan.
Methodology: To affirm the aforementioned arguments, the research has used primary data composed of 61 households through random sampling technique via formal survey from an important and representative town of the province, i.e., Utmanzai, District Charsadda. Two kinds of analysis were employed for estimation purposes. First, the demographics profile was used and second econometrics techniques of Principle Component Analysis and Simple Regression Model were used.
Main Findings: The findings of the research study showed that tribal identity is a significant factor in determining the economic mobility among the people of the town because the majority tribe has better access to education particularly at a higher level of education. The findings obtained from the employment level shows lack of decent employment opportunities for minority tribe. It was also found that the majority tribe has more access to credit facilities while minority tribe accessing and availing of credit easy while minority tribe found access to credit difficult for the reason of low-income levels, lack of collateral, and high-interest rate.
Applications of the Study: The current study contributes to knowledge by explaining intergenerational economic mobility through tribal identity even though they profess the same religion, speak the same language, belong to the same ethnic group, and have the same skin color.
Novelty/Originality of this study: The study finds that people’s socioeconomic attributes are highly dependent upon their tribal identity.
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- Atieno, R. (2001). Formal and informal institutions’ lending policies and access to credit by small scale enterprises in Kenya: An empirical assessment, African Economic Research Consortium, Nairobi.
- Bhattacharya, D., and Mazumder, B. (2011). A nonparametric analysis of black–white differences in intergenerational income mobility in the United States. Quantitative Economics, 2(3), 335-379. https://doi.org/10.3982/QE69 DOI: https://doi.org/10.3982/QE69
- Bloom D. (2015). Income Inequality and Intergenerational Income Mobility in United States. Demography 93(3), 1047-1080. https://doi.org/10.1093/sf/sou092 DOI: https://doi.org/10.1093/sf/sou092
- Bloome, D. (2017). Childhood family structure and intergenerational income mobility in the United States. Demography, 54(2), 541-569. https://doi.org/10.1007/s13524-017-0564-4 DOI: https://doi.org/10.1007/s13524-017-0564-4
- Bourguignon, F., & Dessus, S. (2009). Equity and development: Political economy considerations. NO GROWTH WITHOUT EQUITY?, 45.
- Braga, B., McKernan, S. M., Ratcliffe, C., & Baum, S. (2017). Wealth inequality is a barrier to education and social mobility. Urban Institute: Elevate the Debate. https://www.urban.org/research/publication/wealth-inequality-barrier-education-and-social-mobility.
- Chauvel, L., and Leist, A. (2015). Socioeconomic Hierarchy and Health Gradient: The Role of Income Inequality and Social Origins in Europe. International Journal for Equity in Health (2015), 14, 132. https://doi.org/10.1186/s12939-015-0263-y DOI: https://doi.org/10.1186/s12939-015-0263-y
- Cheema, A., and Naseer, M. F. (2013). Historical inequality and intergenerational educational mobility: The dynamics of change in rural Punjab. The Lahore Journal of Economics, 18, 211– 231. https://doi.org/ 10.35536/lje.2013.v18.isp.a9 DOI: https://doi.org/10.35536/lje.2013.v18.isp.a9
- Cobbinah, P. B., Black, R., and Thwaites, R. (2013). Dynamics of poverty in developing countries: Review of poverty reduction approaches. Journal of Sustainable Development, 6(9), 25. https://doi.org/ 10.5539/jsd.v6n9p25 DOI: https://doi.org/10.5539/jsd.v6n9p25
- Corak, M., Curtis, L., and Phipps, S. (2016). Economic mobility. Pathways, The Poverty and Inequality Report. Special issue.
- Dabla-Norris, E., Ji, Y., Townsend, R. M., and Unsal, D. F. (2015). Distinguishing constraints on financial inclusion and their impact on GDP, TFP, and inequality (No. w20821). National Bureau of Economic Research. https://doi.org/10.3386/w20821 DOI: https://doi.org/10.3386/w20821
- Dearing, T. C. (2017). Social Services, Social Justice, and Social Innovations: Lessons for Addressing Income Inequality. Religions, 8(5), 89. https://doi.org/10.3390/rel8050089 DOI: https://doi.org/10.3390/rel8050089
- Ewing, R., Hamidi, S., Grace, J. B., and Wei, Y. D. (2016). Does urban sprawl hold down upward mobility? Landscape and Urban Planning, 148, 80-88. https://doi.org/10.1016/j.landurbplan.2015.11.012 DOI: https://doi.org/10.1016/j.landurbplan.2015.11.012
- Ferreira, F. H., Messina, J., Rigolini, J., López-Calva, L. F., Lugo, M. A., and Vakis, R. (2012). Economic mobility and the rise of the Latin American middle class. The World Bank Report. https://doi.org/10.1596/978-0-8213-9634-6 DOI: https://doi.org/10.1596/978-0-8213-9634-6
- Fox, L., Torche, F., & Waldfogel, J. (2016). Intergenerational mobility. The Oxford handbook of the social science of poverty. https://doi.org/10.1093/oxfordhb/9780199914050.013.24 DOI: https://doi.org/10.1093/oxfordhb/9780199914050.013.24
- Grawe, N. D. (2017). Demographics and the Demand for Higher Education. JHU Press.
- Greenstone, M., Looney, A., Patashnik, J., and Yu, M. (2013). Thirteen economic facts about social mobility and the role of education. Washington, DC: Hamilton Project.
- Haskins, R. (2009). Promoting economic mobility by increasing postsecondary education. the report May 12, 2009Projects: Economic Mobility Project.
- Havinga, I. C., Mohammad, F., Cohen, S. I., and Niazi, M. K. (1986). Intergenerational mobility and long-term socio-economic change in Pakistan. The Pakistan Development Review, 25(4), 609-628. https://doi.org/10.3 0541/v25i4pp.609-628 DOI: https://doi.org/10.30541/v25i4pp.609-628
- Hilger, N. G. (2015). The great escape: Intergenerational mobility in the united states since 1940 (No. w21217). National Bureau of Economic Research. https://doi.org/10.3386/w21217 DOI: https://doi.org/10.3386/w21217
- Javed, S. A., and Irfan, M. (2014). Intergenerational Mobility: Evidence from Pakistan Panel Household Survey. The Pakistan Development Review, 175-203. https://doi.org/10.30541/v53i2pp.175-203 DOI: https://doi.org/10.30541/v53i2pp.175-203
- Kemal, A. R. (2006). Income Inequalities in Pakistan and a strategy to reduce income inequalities. Background Paper for PRSP-II, PRSP Secretariat, Government of Pakistan.
- Mazumder, B. (2011). Black-white differences in intergenerational economic mobility in the US. Journal of Labor Economics, 24(3), 411-482. https://doi.org/10.2139/ssrn.1966690 DOI: https://doi.org/10.2139/ssrn.1966690
- Moscarini, G., and Thomsson, K. (2007). Occupational and Job Mobility in the US. Scandinavian Journal of Economics, 109(4), 807-836. https://doi.org/10.1111/j.1467-9442.2007.00510.x DOI: https://doi.org/10.1111/j.1467-9442.2007.00510.x
- Mwangi, I. W., and Ouma, S. A. (2012). Social capital and access to credit in Kenya. American Journal of Social and Management Sciences, 3(1), 8-16. https://doi.org/10.5251/ajsms.2012.3.1.8.16 DOI: https://doi.org/10.5251/ajsms.2012.3.1.8.16
- Park, C. Y., & Mercado, R. (2015). Financial inclusion, poverty, and income inequality in developing Asia. Asian Development Bank Economics Working Paper Series, 426. https://doi.org/10.2139/ssrn.2558936 DOI: https://doi.org/10.2139/ssrn.2558936
- Qin, X., Wang, T., and Zhuang, C. C. (2016). Intergenerational transfer of human capital and its impact on income mobility: Evidence from China. China Economic Review, 38, 306-321. https://doi.org/10.1 016/j.chieco.2014.10.005 DOI: https://doi.org/10.1016/j.chieco.2014.10.005
- Shao, L. P., McKinney Jr, R. E., and Shao, D. H. (2012). Purchasing power of credit, social mobility, and economic mobility.
- White, L. J. (2010). Markets: The credit rating agencies. Journal of Economic Perspectives, 24(2), 211-26. https://doi.org/10.1257/jep.24.2.211 DOI: https://doi.org/10.1257/jep.24.2.211
- Wilson, C. (2004). Understanding the dynamics of socio-economic mobility: Tales from two Indian villages. Overseas Development Institute.
References
Atieno, R. (2001). Formal and informal institutions’ lending policies and access to credit by small scale enterprises in Kenya: An empirical assessment, African Economic Research Consortium, Nairobi.
Bhattacharya, D., and Mazumder, B. (2011). A nonparametric analysis of black–white differences in intergenerational income mobility in the United States. Quantitative Economics, 2(3), 335-379. https://doi.org/10.3982/QE69 DOI: https://doi.org/10.3982/QE69
Bloom D. (2015). Income Inequality and Intergenerational Income Mobility in United States. Demography 93(3), 1047-1080. https://doi.org/10.1093/sf/sou092 DOI: https://doi.org/10.1093/sf/sou092
Bloome, D. (2017). Childhood family structure and intergenerational income mobility in the United States. Demography, 54(2), 541-569. https://doi.org/10.1007/s13524-017-0564-4 DOI: https://doi.org/10.1007/s13524-017-0564-4
Bourguignon, F., & Dessus, S. (2009). Equity and development: Political economy considerations. NO GROWTH WITHOUT EQUITY?, 45.
Braga, B., McKernan, S. M., Ratcliffe, C., & Baum, S. (2017). Wealth inequality is a barrier to education and social mobility. Urban Institute: Elevate the Debate. https://www.urban.org/research/publication/wealth-inequality-barrier-education-and-social-mobility.
Chauvel, L., and Leist, A. (2015). Socioeconomic Hierarchy and Health Gradient: The Role of Income Inequality and Social Origins in Europe. International Journal for Equity in Health (2015), 14, 132. https://doi.org/10.1186/s12939-015-0263-y DOI: https://doi.org/10.1186/s12939-015-0263-y
Cheema, A., and Naseer, M. F. (2013). Historical inequality and intergenerational educational mobility: The dynamics of change in rural Punjab. The Lahore Journal of Economics, 18, 211– 231. https://doi.org/ 10.35536/lje.2013.v18.isp.a9 DOI: https://doi.org/10.35536/lje.2013.v18.isp.a9
Cobbinah, P. B., Black, R., and Thwaites, R. (2013). Dynamics of poverty in developing countries: Review of poverty reduction approaches. Journal of Sustainable Development, 6(9), 25. https://doi.org/ 10.5539/jsd.v6n9p25 DOI: https://doi.org/10.5539/jsd.v6n9p25
Corak, M., Curtis, L., and Phipps, S. (2016). Economic mobility. Pathways, The Poverty and Inequality Report. Special issue.
Dabla-Norris, E., Ji, Y., Townsend, R. M., and Unsal, D. F. (2015). Distinguishing constraints on financial inclusion and their impact on GDP, TFP, and inequality (No. w20821). National Bureau of Economic Research. https://doi.org/10.3386/w20821 DOI: https://doi.org/10.3386/w20821
Dearing, T. C. (2017). Social Services, Social Justice, and Social Innovations: Lessons for Addressing Income Inequality. Religions, 8(5), 89. https://doi.org/10.3390/rel8050089 DOI: https://doi.org/10.3390/rel8050089
Ewing, R., Hamidi, S., Grace, J. B., and Wei, Y. D. (2016). Does urban sprawl hold down upward mobility? Landscape and Urban Planning, 148, 80-88. https://doi.org/10.1016/j.landurbplan.2015.11.012 DOI: https://doi.org/10.1016/j.landurbplan.2015.11.012
Ferreira, F. H., Messina, J., Rigolini, J., López-Calva, L. F., Lugo, M. A., and Vakis, R. (2012). Economic mobility and the rise of the Latin American middle class. The World Bank Report. https://doi.org/10.1596/978-0-8213-9634-6 DOI: https://doi.org/10.1596/978-0-8213-9634-6
Fox, L., Torche, F., & Waldfogel, J. (2016). Intergenerational mobility. The Oxford handbook of the social science of poverty. https://doi.org/10.1093/oxfordhb/9780199914050.013.24 DOI: https://doi.org/10.1093/oxfordhb/9780199914050.013.24
Grawe, N. D. (2017). Demographics and the Demand for Higher Education. JHU Press.
Greenstone, M., Looney, A., Patashnik, J., and Yu, M. (2013). Thirteen economic facts about social mobility and the role of education. Washington, DC: Hamilton Project.
Haskins, R. (2009). Promoting economic mobility by increasing postsecondary education. the report May 12, 2009Projects: Economic Mobility Project.
Havinga, I. C., Mohammad, F., Cohen, S. I., and Niazi, M. K. (1986). Intergenerational mobility and long-term socio-economic change in Pakistan. The Pakistan Development Review, 25(4), 609-628. https://doi.org/10.3 0541/v25i4pp.609-628 DOI: https://doi.org/10.30541/v25i4pp.609-628
Hilger, N. G. (2015). The great escape: Intergenerational mobility in the united states since 1940 (No. w21217). National Bureau of Economic Research. https://doi.org/10.3386/w21217 DOI: https://doi.org/10.3386/w21217
Javed, S. A., and Irfan, M. (2014). Intergenerational Mobility: Evidence from Pakistan Panel Household Survey. The Pakistan Development Review, 175-203. https://doi.org/10.30541/v53i2pp.175-203 DOI: https://doi.org/10.30541/v53i2pp.175-203
Kemal, A. R. (2006). Income Inequalities in Pakistan and a strategy to reduce income inequalities. Background Paper for PRSP-II, PRSP Secretariat, Government of Pakistan.
Mazumder, B. (2011). Black-white differences in intergenerational economic mobility in the US. Journal of Labor Economics, 24(3), 411-482. https://doi.org/10.2139/ssrn.1966690 DOI: https://doi.org/10.2139/ssrn.1966690
Moscarini, G., and Thomsson, K. (2007). Occupational and Job Mobility in the US. Scandinavian Journal of Economics, 109(4), 807-836. https://doi.org/10.1111/j.1467-9442.2007.00510.x DOI: https://doi.org/10.1111/j.1467-9442.2007.00510.x
Mwangi, I. W., and Ouma, S. A. (2012). Social capital and access to credit in Kenya. American Journal of Social and Management Sciences, 3(1), 8-16. https://doi.org/10.5251/ajsms.2012.3.1.8.16 DOI: https://doi.org/10.5251/ajsms.2012.3.1.8.16
Park, C. Y., & Mercado, R. (2015). Financial inclusion, poverty, and income inequality in developing Asia. Asian Development Bank Economics Working Paper Series, 426. https://doi.org/10.2139/ssrn.2558936 DOI: https://doi.org/10.2139/ssrn.2558936
Qin, X., Wang, T., and Zhuang, C. C. (2016). Intergenerational transfer of human capital and its impact on income mobility: Evidence from China. China Economic Review, 38, 306-321. https://doi.org/10.1 016/j.chieco.2014.10.005 DOI: https://doi.org/10.1016/j.chieco.2014.10.005
Shao, L. P., McKinney Jr, R. E., and Shao, D. H. (2012). Purchasing power of credit, social mobility, and economic mobility.
White, L. J. (2010). Markets: The credit rating agencies. Journal of Economic Perspectives, 24(2), 211-26. https://doi.org/10.1257/jep.24.2.211 DOI: https://doi.org/10.1257/jep.24.2.211
Wilson, C. (2004). Understanding the dynamics of socio-economic mobility: Tales from two Indian villages. Overseas Development Institute.