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Intergenerational Mobility and Inequality in China: Evidence from the Chinese Household Income Project

Author

Listed:
  • Zehua Jiang

    (Queen Mary University of London)

  • Sanghamitra Bandyopadhyay

    (Queen Mary University of London)

Abstract

We document intergenerational mobility in the income distribution in China, using Chinese Household Income Project survey data from the 1990s till 2013. To obtain a robust picture of mobility, we use several measures of mobility: from the most commonly used intergenerational income elasticity to the innovative rank mobility measures. We then estimate quantile regressions to capture variation along the income distribution. Conclusively, our results suggest higher dependence of children’s income on parental income for lower income generational pairs, indicating challenges to promote upward mobility and reducing inequality.

Suggested Citation

  • Zehua Jiang & Sanghamitra Bandyopadhyay, 2024. "Intergenerational Mobility and Inequality in China: Evidence from the Chinese Household Income Project," Hacienda Pública Española / Review of Public Economics, IEF, vol. 248(1), pages 73-90, March.
    • Handle: RePEc:hpe:journl:y:2024:v:248:i:1:p:73-90
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    References listed on IDEAS

    as
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    3. Chen, Yuyu & Naidu, Suresh & Yu, Tinghua & Yuchtman, Noam, 2015. "Intergenerational mobility and institutional change in 20th century China," Explorations in Economic History, Elsevier, vol. 58(C), pages 44-73.
    4. Yi Fan & Junjian Yi & Junsen Zhang, 2021. "Rising Intergenerational Income Persistence in China," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 202-230, February.
    5. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    6. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
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    8. Raj Chetty & John N Friedman & Emmanuel Saez & Nicholas Turner & Danny Yagan, 2020. "Income Segregation and Intergenerational Mobility Across Colleges in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(3), pages 1567-1633.
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    More about this item

    Keywords

    Intergenerational mobility; Inequality; Quantile regressions; Rank mobility; China.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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