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Rising Intergenerational Income Persistence in China

Author

Listed:
  • Yi Fan
  • Junjian Yi
  • Junsen Zhang

Abstract

This paper documents an increasing intergenerational income persistence in China since economic reforms were introduced in 1979. The intergenerational income elasticity increases from 0.390 for the 1970–1980 birth cohort to 0.442 for the 1981–1988 birth cohort; this increase is more evident among urban and coastal residents than rural and inland residents. We also explore how changes in intergenerational income persistence is correlated with market reforms, economic development, and policy changes.

Suggested Citation

  • Yi Fan & Junjian Yi & Junsen Zhang, 2021. "Rising Intergenerational Income Persistence in China," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 202-230, February.
    • Handle: RePEc:aea:aejpol:v:13:y:2021:i:1:p:202-30
    DOI: 10.1257/pol.20170097
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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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