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Intergenerational Income Mobility in Urban China

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  • Gong, Cathy Honge

    ()
    (University of Canberra)

  • Leigh, Andrew

    ()
    (Australian National University)

  • Meng, Xin

    ()
    (Australian National University)

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

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4811.

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Length: 40 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:iza:izadps:dp4811

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Keywords: intergenerational mobility; transgenerational persistence; political party membership;

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References

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Citations

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Cited by:
  1. Yi Chen & Frank A Cowell, 2013. "Mobility in China," STICERD - Public Economics Programme Discussion Papers, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 18, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. Tor Eriksson & Jay Pan & Xuezheng Qin, 2013. "The Intergenerational Inequality of Health in China," Economics Working Papers, School of Economics and Management, University of Aarhus 2013-21, School of Economics and Management, University of Aarhus.
  3. Quheng, Deng & Gustafsson, Björn Anders & Li, Shi, 2012. "Intergenerational Income Persistency in Urban China," IZA Discussion Papers 6907, Institute for the Study of Labor (IZA).

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