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Intergenerational Income Mobility In Urban China

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  • HONGE GONG
  • ANDREW LEIGH
  • XIN MENG

Abstract

This paper estimates the intergenerational income elasticity for urban China, paying careful attention to the potential biases induced by income fluctuations and life cycle effects. Our preferred estimates are that the intergenerational income elasticities are 0.74 for father-son, 0.84 for father-daughter, 0.33 for mother-son, and 0.47 for mother-daughter. This suggests that while China has experienced rapid growth of absolute incomes, the relative position of children in the distribution is largely determined by their parents’ incomes. Investigating possible causal channels, we find that parental education, occupation, and Communist Party membership all play important roles in transmitting economic status from parents to children.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 58 (2012)
Issue (Month): 3 (09)
Pages: 481-503

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Handle: RePEc:bla:revinw:v:58:y:2012:i:3:p:481-503

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Cited by:
  1. Quheng Deng & Björn Gustafsson & Shi Li, 2013. "Intergenerational Income Persistence in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 416-436, 09.
  2. Tor Eriksson & Jay Pan & Xuezheng Qin, 2013. "The Intergenerational Inequality of Health in China," Economics Working Papers 2013-21, School of Economics and Management, University of Aarhus.
  3. Yi Chen & Frank A Cowell, 2013. "Mobility in China," STICERD - Public Economics Programme Discussion Papers 18, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.

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