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The Role of Family Background for Earnings in Rural China

Author

Listed:
  • Tor Eriksson

    (Department of Economics and Business, Aarhus University, 8230 Aabyhoej, Denmark)

  • Yingqiang Zhang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

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. Compared to 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.

Suggested Citation

  • Tor Eriksson & Yingqiang Zhang, 2012. "The Role of Family Background for Earnings in Rural China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(3), pages 465-477, September.
    • Handle: RePEc:fec:journl:v:7:y:2012:i:3:p:465-477
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0020-6
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    Citations

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    Cited by:

    1. Schnitzlein, Daniel D., 2014. "How Important Is the Family? Evidence from Sibling Correlations in Permanent Earnings in the USA, Germany, and Denmark," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(1), pages 69-89.
    2. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Eriksson, Tor & Pan, Jay & Qin, Xuezheng, 2014. "The intergenerational inequality of health in China," China Economic Review, Elsevier, vol. 31(C), pages 392-409.
    4. Yang, Juan & Qiu, Muyuan, 2016. "The impact of education on income inequality and intergenerational mobility," China Economic Review, Elsevier, vol. 37(C), pages 110-125.
    5. Asmus Zoch, 2017. "The effect of neighbourhoods and school quality on education and labour market outcomes in South Africa," Working Papers 08/2017, Stellenbosch University, Department of Economics.

    More about this item

    Keywords

    family background; sibling correlation; income inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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