Intergenerational Income and Religiosity: A Longitudinal Study of Agricultural Household in Indonesia

Abstract

This study aimed to analyze the influence of religiosity and socio-economic determinant factors to income relationship between inter-generationsof farmers and their children. Data related to farmers (parents) were collected from (Indonesia Family Live Survey) IFLS-93, while data related to farmers' children was obtained by tracing in IFLS-2014. The 21-year interval is supposed to be sufficient time to grasp developments between generations. The results revealed that farmer children's households have better economic potential than that of their parents. Comparing to the poor farming households, the percentage of the poor generation is higher than non-poor farmer households. The income of parents (farmers) and the education of farmers' children are factors that play an important role in increasing the income of farmers' children, having strong (robust) and significant positive effect. Another variable that has positive significant effect is agricultural land ownership, while age, household burden, working in agriculture, and religiosity-religion have negative significant effects. Implementation of religiosity activities should be encouraging productivity and prosperity of life in accordance with the guidelines and rules in Islam.