Intergenerational Income Mobility in Urban China

23 Pages Posted: 3 Aug 2012

See all articles by Honge Cathy Gong

Honge Cathy Gong

National Centre for Social and Economic Modelling

Andrew Leigh

Australian House of Representatives Parliament House; Centre for Applied Macroeconomic Analysis, ANU; IZA

Xin Meng

Australian National University; IZA Institute of Labor Economics

Date Written: September 2012

Abstract

This paper estimates the intergenerational income elasticity for urban China, paying careful attention to the potential biases induced by income fluctuations and life cycle effects. Our preferred estimate indicates that the intergenerational income elasticity for father-son is 0.63. This suggests that while China has experienced rapid growth of absolute incomes, the relative position of children in the distribution is largely related to their parents' incomes. By investigating possible causal channels, we find that parental education plays one of the most important roles in transmitting economic status from parents to children.

Keywords: intergenerational mobility, political party membership, transgenerational persistence

JEL Classification: D10, D31

Suggested Citation

Gong, Honge Cathy and Leigh, Andrew and Meng, Xin, Intergenerational Income Mobility in Urban China (September 2012). Review of Income and Wealth, Vol. 58, Issue 3, pp. 481-503, 2012, Available at SSRN: https://ssrn.com/abstract=2122997 or http://dx.doi.org/10.1111/j.1475-4991.2012.00495.x

Honge Cathy Gong (Contact Author)

National Centre for Social and Economic Modelling ( email )

Canberra, ACT 2601
AUSTRALIA
02-62012786 (Phone)
02-62012751 (Fax)

HOME PAGE: http://www.natsem.com.au

Andrew Leigh

Australian House of Representatives Parliament House ( email )

Canberra, 2600
Australia

Centre for Applied Macroeconomic Analysis, ANU ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

IZA ( email )

Xin Meng

Australian National University ( email )

Research School of Economics
College of Business and Economics
Canberra ACT 0200
Australia
+61 26249 3102 (Phone)

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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