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The Role of Family Background for Earnings in Rural China

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Author Info

  • Eriksson, Tor

    ()
    (Department of Economics, Aarhus School of Business)

  • Zhang, Yingqiang

    (Beijing Jiaotong University)

Abstract

This paper provides estimates of brother income correlations for rural China. Brother correlations are a parsimonious measure of the importance of family and community background as determinants of individuals’ economic status. We find internationally high levels of income similarity for brothers and siblings: 0.57 and 0.58, respectively. We show that compared with the 1990s, income correlations have decreased in more recent years, but remain high. Furthermore, we document virtually no differences between the coastal and interior provinces and by father’s education. The high brother correlations imply that the high level of income inequality in China is likely to persist.

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File URL: http://www.hha.dk/nat/wper/10-14_tor.pdf
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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 10-14.

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Length: 18 pages
Date of creation: 01 Jan 2010
Date of revision:
Handle: RePEc:hhs:aareco:2010_014

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Keywords: Family background; sibling correlation; income inequality;

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