Rising Intergenerational Income Persistence in China
67 Pages Posted: 13 Dec 2019
Date Written: November 10, 2019
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
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