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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, 2019. "Rising Intergenerational Income Persistence in China," Working Papers 2019-067, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2019-067
    Note: ECI, FI
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    References listed on IDEAS

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    Cited by:

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    6. Lou, Jing & Li, Jie, 2022. "Export expansion and intergenerational education mobility: Evidence from China," China Economic Review, Elsevier, vol. 73(C).
    7. Guangsu Zhou & Xiaoyu Bian, 2024. "The impact of intergenerational income mobility on internal migration in China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(1), pages 183-208, January.
    8. Jo Blanden & Matthias Doepke & Jan Stuhler, 2022. "Education inequality," CEP Discussion Papers dp1849, Centre for Economic Performance, LSE.
    9. Shiqi Jiang & Lingli Qi & Xinyue Lin, 2022. "The Impacts of COVID-19 Shock on Intergenerational Income Mobility: Evidence from China," IJERPH, MDPI, vol. 19(18), pages 1-20, September.
    10. Emran, M. Shahe & Jiang, Hanchen & Shilpi, Forhad, 2020. "Gender Bias and Intergenerational Educational Mobility: Theory and Evidence from China and India," GLO Discussion Paper Series 497, Global Labor Organization (GLO).
    11. Holger Sieg & Chamna Yoon & Jipeng Zhang, 2020. "The Impact of Migration Controls on Urban Fiscal Policies and the Intergenerational Transmission of Human Capital in China," NBER Working Papers 27764, National Bureau of Economic Research, Inc.
    12. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    13. Jiantao Zhou & Eddie Chi-Man Hui & Huiwen Peng, 2022. "Chasing opportunity? Inequality of opportunity and educational self-selection of interprovincial migrants in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 281-309, October.
    14. Zafar, Rafia, 2022. "Intergenerational Mobility in Income and Consumption: Evidence from Indonesia," SocArXiv uzcfs, Center for Open Science.
    15. Xiaohe Zhou & Mingda Cheng & Chunhui Ye, 2023. "The Impact of Household Migration on the Intergenerational Educational Mobility: Based on the Perspective of Adolescent Development," IJERPH, MDPI, vol. 20(6), pages 1-13, March.
    16. Feng, Qundi & He, Qinying, 2022. "Does parental migration increase upward intergenerational mobility? Evidence from rural China," Economic Modelling, Elsevier, vol. 115(C).
    17. Duan, Yide & Zhang, Haotian & Wang, Wenfu & Ao, Xiaoyan, 2022. "The effects of China's higher education expansion on urban and rural intergenerational mobility," China Economic Review, Elsevier, vol. 73(C).
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    19. Weibo Yan & Xiaolan Deng, 2022. "Intergenerational income mobility and transmission channels in a transition economy: Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(1), pages 183-207, January.
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    More about this item

    Keywords

    intergenerational income persistence; economic transition; Great Gatsby Curve;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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

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