# Introduction

The evolution of income distribution, inequality and<sup>occupational structureacross generations</sup> has attracted increasing attention in recent economic<sup>literature.Thisrenewedinterestreflectsa</sup> widely shared consensus that the existence of intergenerational<sup>linkagesin socioeconomicstatus</sup> has profound implications for mobility (or immobility)<sup>ina society.Startingfromidenticalini-</sup> tial income distribution or occupational structure,<sup>theevolutionof two societiesmightdiverge</sup> dramatically if the strength of intergenerational<sup>linkagesdifferssignificantly.'A largebodyof</sup> empirical studies focusing mainly on developed<sup>countriesfindsthat intergenerationalcorrelations</sup> in earnings are positive, statistically significant and<sup>numericallylarge,rangingbetween 0.2to 0.5</sup> (for a survey, see Solon (1999)).2 There is also a<sup>(relatively)smallempiricalliteraturethatindi-</sup> cates significant positive correlations between parents<sup>andtheiroffspringin occupationalchoices</sup> (see Dunn and Holtz-Eakin (2000) on U.S, Sjogren<sup>(2000)onSweden,andChevalier(2001)on</sup> UK). In this paper, we focus on intergenerational<sup>correlationsinnon-farmemploymentin a</sup> developing country, Nepal, with a particular emphasis<sup>onthe gender dimensionof thesecorrela-</sup> tions.<sup>3</sup> Although there is a substantial literature<sup>onthedeterminantsof non-farmparticipation</sup> (see Lanjouw and Feder (2001) for a survey), the<sup>issueof intergenerationallinkageshas so far not</sup> received any attention. A vast literature also explores<sup>gendereffectsinintra-householdallocation</sup> of resources in developing countries (Kanbur and<sup>Haddad,1994;HaddinottandHaddad,1995,</sup> Thomas, 1997; Quisumbing and Maluccio, 1999).<sup>However,to ourknowledge,thegendereffects</sup> in intergenerational linkages in non-farm participation<sup>havenotbeenanalyzedbefore.</sup> Although so far neglected in the literature, the analysis<sup>of intergenerationallinkagesand gender</sup> effects in non-farm participation has important<sup>implicationsthat spana numberof policyareas.</sup> 'At one extreme, the socioeconomic opportunities available<sup>toanindividualinasocietymight beeffectively</sup> determined by birth as in a caste system. At the other<sup>extremeisa perfectlymobilesociety,in whichthesetof</sup> opportunities is same irrespective of the exogenous<sup>characteristicsof anindividual,likebirth,gender,ethnicity.It</sup> is often argued that mobility is much more restricted<sup>indevelopingcountries(see,for example,LamandSchoeni,</sup> 1993).

> 2As indicated in Solon (1999), most of the papers on intergenerational income correlations focused on the interlink between father and sons. Chadwick and Solon (2002) is one of the<sup>few</sup> exceptions<sup>lookingatthese</sup> correlations between mothers and daughters.

> 3 There are a couple of advantages in focusing on occupational correlation instead of income correlation. First, it is not fraught with the almost insurmountable measurement<sup>problemsin permanentincome,the variableof interest</sup> in income mobility studies. Second, as Coldberger<sup>(1989)pointedoutearlyon,intergenerationallinkagesmight be</sup> stronger for occupation choice (relative to income), and<sup>focusingonincomecorrelations"could leadan economist</sup> to understate the influence of family background<sup>oninequality"(P.513).</sup>