Rising Intergenerational Income Persistence in China

American Economic Journal: Economic Policy (2021) 13:1, 202-230. ​

67 Pages Posted: 13 Dec 2019 Last revised: 15 Mar 2022

See all articles by Yi Fan

Yi Fan

National University of Singapore (NUS) - Sustainable & Green Finance Institute (SGFIN)

Junjian Yi

Peking University

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 10, 2019

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.

Keywords: Intergenerational income persistence, Economic transition, Great Gatsby Curve

JEL Classification: E24, J62, O15

Suggested Citation

Fan, Yi and Yi, Junjian and Zhang, Junsen, Rising Intergenerational Income Persistence in China (November 10, 2019). American Economic Journal: Economic Policy (2021) 13:1, 202-230. ​, Available at SSRN: https://ssrn.com/abstract=3494119 or http://dx.doi.org/10.2139/ssrn.3494119

Yi Fan

National University of Singapore (NUS) - Sustainable & Green Finance Institute (SGFIN) ( email )

Singapore

Junjian Yi (Contact Author)

Peking University ( email )

National School of Development
Peking University
Beijing, Beijing 100871
China

HOME PAGE: http://https://en.nsd.pku.edu.cn/faculty/fulltime/y/520194.htm

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong

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