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The Role of Family Background for Earnings in Rural China

Author

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  • 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.

Suggested Citation

  • Eriksson, Tor & Zhang, Yingqiang, 2010. "The Role of Family Background for Earnings in Rural China," Working Papers 10-14, University of Aarhus, Aarhus School of Business, Department of Economics.
  • Handle: RePEc:hhs:aareco:2010_014
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    File URL: http://www.hha.dk/nat/wper/10-14_tor.pdf
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    Cited by:

    1. Jantti, Markus & Jenkins, Stephen P., 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    2. 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.
    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.

    More about this item

    Keywords

    Family background; sibling correlation; income inequality;

    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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