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Socio-Economic Groups, Upward And Downward Mobility: An Axiomatic Framework And Income Mobility In China From 1989–2011

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  • LEZHENG LIU

    (China Academy of Public Finance and Public Policy, Central University of Finance and Economics, South College Road 39, Haidian District, Beijing, P. R. China)

  • BAOYUN QIAO

    (China Academy of Public Finance and Public Policy, Central University of Finance and Economics, South College Road 39, Haidian District, Beijing, P. R. China)

  • XIAOYU WU

    (China Academy of Public Finance and Public Policy, Central University of Finance and Economics, South College Road 39, Haidian District, Beijing, P. R. China)

  • YONGSHENG XU

    (#x2020;Andrew Young School of Policy Studies, Georgia State University, Atlanta, GA, U.S.A.)

Abstract

A society is composed of different socio-economic groups. At a given time, individuals in the society can be classified into different such groups. With the change of time, individuals can move across different groups. Social mobility is viewed as an aggregation of such individual movements across different socio-economic groups. We develop a simple analytic framework to discuss the issue of social mobility, and derive a class of measures for social mobility. A prominent member of this class is the Bartholomew measure that has often been used in applied work. We apply our framework and the theoretical results to the Chinese society by investigating its income mobility for the period between 1989 and 2011. We find an increasing trend in income mobility in 1990s and a drop in the middle and the late of 2000s. By decomposing total mobility into subgroups and into movements, we find that the lowest income group and one/two-step moves make the largest contribution in total mobility.

Suggested Citation

  • Lezheng Liu & Baoyun Qiao & Xiaoyu Wu & Yongsheng Xu, 2020. "Socio-Economic Groups, Upward And Downward Mobility: An Axiomatic Framework And Income Mobility In China From 1989–2011," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(supp01), pages 35-56, December.
    • Handle: RePEc:wsi:serxxx:v:65:y:2020:i:supp01:n:s0217590819440065
    DOI: 10.1142/S0217590819440065
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